Crypto-linked stocks tumbled on Wednesday, with a bloodbath sweeping through Wall Street, which dragged down both digital assets and related stocks.
The world’s largest cryptocurrency, Bitcoin, slipped further from last week’s record high, sparking broad weakness across digital asset equities and heightening investor jitters over the Fed’s monetary policy outlook.
Bitcoin fell 1.5% over the past 24 hours to $113,694, according to CoinDesk data, roughly 9% below the record high it reached just last week. The broader crypto market also faced declines. Ethereum slipped 1.6%, XRP dropped 4.2%, and Solana edged down 0.2%.
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Crypto-related stocks mirrored the downturn. Coinbase and eToro shares fell more than 5% and 6% respectively, while Robinhood and Bullish each slid over 6%. Galaxy Digital dropped 10%, while crypto treasury firms also recorded steep losses: Strategy declined 7%, SharpLink Gaming slipped 8%, Bitmine Immersion fell 9%, and DeFi Development tumbled 13%. Stablecoin issuer Circle lost 4.5%.
Investor caution ahead of the Federal Reserve’s meeting minutes weighed heavily on the sector, particularly after wholesale inflation data came in hotter than expected. The uncertainty surrounding the Fed’s next move has left traders hesitant, with many opting to book profits.
Meanwhile, Bitcoin remained the primary focus of crypto outflows last week. According to the report, investors pulled $756 million from BTC investment products over the past week. Notably, short-Bitcoin products designed to profit from price declines also saw outflows of $19.8 million, the largest since December 2024.
Analysts at Bitfinex suggested Bitcoin could remain range-bound until stronger macroeconomic catalysts emerge. Adding to market intrigue, the Financial Times reported that Treasury Secretary Scott Bessent sees stablecoins as a future driver of U.S. government bond demand, expecting the asset class to become a key buyer of Treasuries in the coming years.
Tekedia reported earlier that Bitcoin’s latest price slump has pressured short-term investors, many of whom have rushed to cut their losses. Cointelegraph revealed that more than 20,000 BTC held by short-term holders (STHs) have been sold as the crypto asset continues its bearish price movement.
This comes as the market started the new week with a continuous downward movement, which saw more than $500 million in long positions wiped out amid rising macroeconomic concerns and renewed uncertainty around U.S monetary policy. The price of Bitcoin has continued on its downward trajectory, slumping to $112,300 price range today, before a slight retracement.
Despite the continuous price decline of the crypto asset, not all analysts are pessimistic. Prominent Bitcoin commentator BitQuant, known for accurate past predictions, maintained that BTC will hold above $100,000 during this cycle. “Bitcoin isn’t going below $100K not in this cycle. Doesn’t matter the news, the Fed, or inflation,” he said, dismissing the possibility of the token even “coming close” to the psychological threshold.
Meanwhile, market sentiment remains divided. Trading firm Swissblock cautioned that a break below the $100K–$110K support zone, which has held firm for over 100 days, would open the door for sub-$100,000 levels. Also, Bitcoin analyst AlphaBTC warned that a close below $114,700 could drag BTC toward the $110,000–$112,000 demand zone.
While Bitcoin’s dip below $114,500 marked an 8.8% decline from its recent record at 124,518, bullish voices argue the six-figure floor remains intact, leaving markets in a wait-and-see mode as macroeconomic pressures continue to play out.