Crypto-Linked Stocks Plummet as Bitcoin Extends Losing Streak
Crypto-Linked Stocks Tumble in Premarket Trading
Cryptocurrency-linked stocks saw a significant decline in premarket U.S. trading on Monday, mirroring Bitcoin's extended losing streak. Bitcoin, the world's largest digital token, fell 3.3% to $82,264.8 by 07:11 ET, marking its fifth consecutive session of losses. Ether, the second-largest cryptocurrency, also dropped 2% to $2,103.35.
Shares of companies exposed to crypto assets suffered notable declines. MicroStrategy (NASDAQ:MSTR) dipped 5.5%, while Coinbase (NASDAQ:COIN), the largest U.S. crypto exchange, fell 5.6%. Mining firms Riot Platforms (NASDAQ:RIOT), Mara Holdings, Bit Digital, CleanSpark (NASDAQ:CLSK), and Hut8 all retreated by over 4%.
Trump's Bitcoin Reserve Order Fails to Inspire Confidence
Investors showed a lackluster response to President Donald Trump's recent announcement of a strategic Bitcoin reserve. The reserve, which includes Bitcoin, Ether, XRP, Solana, and Cardano, was a key topic at a White House crypto summit. However, the absence of details on fresh government crypto purchases left markets underwhelmed.
Trump's executive order instructed trade and commerce secretaries to explore "budget-neutral" strategies for buying Bitcoin, but clarity on implementation remains elusive. The announcement coincided with growing uncertainty over the potential impact of Trump's tariff policies, further dampening risk appetite.
Market Reaction and Regulatory Uncertainty
Despite Trump's campaign promise to make the U.S. the "crypto capital of the world," the latest developments have done little to reassure investors. The crypto industry continues to await clarity on regulatory frameworks, as the White House summit yielded few details on Trump's broader crypto policy agenda.
The combination of Bitcoin's extended decline and regulatory uncertainty has weighed heavily on crypto-linked stocks, signaling a cautious mood among investors.
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