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Bitcoin drops as Nasdaq slips into $17t market rout
Crypto-related stocks fell as a broader selloff in US equities pushed risk assets lower and dragged bitcoin below US$66,000.
Coinbase and Galaxy fell nearly 7%, Gemini dropped almost 9%, and Robinhood lost about 6%, while Strategy and Twenty One Capital were down roughly 6% and Ethereum-focused treasury names Bitmine Immersion and Sharplink Gaming fell about 5%.
Crypto miners including Riot Platforms, CleanSpark, IREN, HIVE Digital, Hut 8, MARA, and Bitdeer declined about 5% to 8% amid a broader risk-off move as markets weighed higher oil prices and softer labor signals alongside comments from Federal Reserve officials.
The report also said the Nasdaq 100 is more than 10% below its January high and that about US$17 trillion in market value has been wiped from peak levels across the Magnificent Seven, gold, silver, and bitcoin.
🔗 Source: CoinDesk
🧠 Food for thought
Implications, context, and why it matters.
These companies are built to magnify bitcoin swings
- Several of these stocks trade like leveraged bets on digital assets, which helps explain the sharp drops.
- Strategy is a Digital Asset Treasuries (DATs) company, a public company that holds large amounts of bitcoin on its balance sheet. Its Bitcoin beta is 1.34, so the stock moves 1.34% for every 1% move in bitcoin 1.
- In sell-offs, Strategy has historically fallen about 1.6 times as much as bitcoin 1.
- Debt adds to the swings. Strategy has raised over $6 billion through convertible notes, while miners such as MARA Holdings have also issued debt to fund growth and buy bitcoin 2.
Debt-backed expansion raises odds of forced sales
- Heavy borrowing by miners and treasury firms adds risk beyond share prices.
- In a slump, miners with debt payments above operating profit may need to sell bitcoin to stay solvent, which can add selling pressure 3.
- The backdrop includes record leverage. Total crypto-collateralized lending reached $73.59 billion at the end of Q3 2025 4.
- A slide could spark a feedback loop, with liquidations echoing a past episode when more than $19 billion in perpetual futures were liquidated in 24 hours 4.
