Crypto Stocks MARA, Robinhood and Strategy Plunge to November Lows Amid Market Meltdown

• Bitcoin’s drop below $90,000 coincided with a sharp sell-off in crypto-related stocks.
• Ethereum, Dogecoin, XRP, and Solana also dropped but have since shown signs of recovery.
• A major security breach at Bybit, rising inflation, and Trump’s policies are weighing on investor sentiment.

Crypto-related stocks took a hit on Tuesday as Bitcoin (BTC) fell below $90,000, extending its recent downturn and triggering a sharp sell-off on Wall Street.

Major crypto-exposed companies, including Marathon Digital (MARA), Robinhood (HOOD), and Coinbase (COIN), saw sharp declines as the crypto market slipped to multi-month lows.

The broader market now faces uncertainty, with market observers questioning whether this signals a prolonged slump or the potential for a near-term rebound.

Wall Street’s Crypto Bloodbath

The stock market rout for crypto-related equities was swift and severe as Bitcoin’s decline sent shockwaves through the sector.

MARA tumbled 11% to $12.41 before recovering a modest 1.8% in after-hours trading. HOOD slid 8% to $45.92, clawing back 2.6% post-market.

Strategy (MSTR), which had soared to nearly $400 in January, continued its downtrend, falling 11% to $250.51 with a slight 1.7% rebound after hours.

Coinbase (COIN) shed 6.4%, while Riot Platforms (RIOT) and Hut 8 (HUT) slumped 6.7% and over 10%, respectively.

In Japan, Metaplanet fared even worse, plummeting 17% in one of its steepest single-day losses on record.

Bitcoin’s Struggles Weigh on Market Sentiment

Bitcoin’s slide below $90,000—a level not seen in months—has been the primary driver behind the stock sell-off.

BTC has now lost 17% since reaching its all-time high above $108,000, briefly touching $86,000 on Tuesday.

Ethereum (ETH), Dogecoin (DOGE), XRP, and Solana (SOL) posted sharp intraday losses but rebounded slightly by the session’s close.

Market Outlook

Volatility has gripped the crypto market for the fifth straight week, fueled by post-election speculation and shifting U.S. policies on crypto.

President Donald Trump’s executive order on digital assets, which includes provisions for a U.S. Treasury digital reserve, has raised concerns about its impact on stablecoins and regulation.

Bitcoin remains under pressure, while Ethereum has rebounded slightly but is still down 20% in 2024. The Bitwise Crypto Index Fund (BITW), which tracks the top 10 cryptocurrencies, gained 2% last week but remains 8% lower year-to-date.

Analysts at Rabobank told CCN, “Crypto is plunging, perhaps due to a recent hack, or the latest pump-and-dump in Argentina, or the emerging realization that Trump’s pro-crypto legislation could exclude foreign-issued stablecoins from accessing the U.S. Treasury market.”

“He wasn’t joking when he said he wanted crypto ‘Made in America.’ Whether this disrupts the national security-driven cycle—where the dollar serves as a gateway to crypto assets, stablecoins fuel Treasury bill demand, and that, in turn, funds military spending—or simply pushes the crypto environment to evolve in new directions remains to be seen,” they added.

With ongoing market uncertainty, all eyes are on Bitcoin’s ability to reclaim $90,000—or whether more pain is ahead for crypto investors.