Crypto Chaos: Bitcoin Plunges Below $66K as Coinbase, MicroStrategy, Gemini, and Miners Face Massive Selloff

Crypto Chaos: Bitcoin Plunges Below $66K as Coinbase, MicroStrategy, Gemini, and Miners Face Massive Selloff

The crypto market is in turmoil. Bitcoin has dropped below $66,000, trading at around $65,709. This sharp fall has dragged down major crypto stocks. Weakness in U.S. stock markets has spread to high-risk assets like crypto.

Big Losses for Crypto Exchanges and Brokers

Coinbase (COIN), a top crypto exchange, fell nearly 7%. Galaxy (GLXY), a digital asset firm, also dropped about 7%. Gemini (GEMI) saw one of the worst hits, sliding almost 9%. Even Robinhood (HOOD), which is friendly to crypto users, lost nearly 6%. The company’s plan to buy back more shares did not stop the decline.

• Coinbase (COIN): Down ~7%
• Galaxy (GLXY): Down ~7%
• Gemini (GEMI): Down ~9%
• Robinhood (HOOD): Down ~6%

Bitcoin and Ethereum-Linked Stocks Tumble

Companies holding Bitcoin on their balance sheets also suffered. MicroStrategy (MSTR), known as Strategy in some reports, and Twenty One Capital (XXI) both plunged about 6%.

Ethereum-focused firms like Bitmine Immersion (BMNR) and Sharplink Gaming (SBET) were down roughly 5%.

Crypto Miners Hit Hardest

Crypto miners act as bets on Bitcoin price and AI growth. They extended losses on Friday:

• Riot Platforms (RIOT): Down 5-8%
• CleanSpark (CLSK): Down 5-8%
• IREN (IREN): Down 5-8%
• HIVE Digital (HIVE): Down 5-8%
• Hut 8 (HUT): Down 5-8%

MARA (MARA) and Bitdeer (BTDR), which gained on Thursday, lost all those wins. They fell 6% and 8%.

Why Is This Happening? Fed Policy and Global Tensions

The Federal Reserve faces tough choices. Oil prices are rising, pushing inflation higher. At the same time, the job market looks weak.

Richmond Fed President Tom Barkin said higher gas prices could hurt spending by consumers. He called hiring conditions “fragile.” Philadelphia Fed President Anna Paulson pointed to the war in Iran as a risk to both inflation and growth.

Treasury yields moved wildly. The 10-year yield hit 4.5% but then fell back. The 2-year yield dropped to 3.91% after peaking at 4.03%.

Investors now worry the Fed might hike rates instead of cutting them. This shift adds pressure on risk assets like crypto.

Broader Market Pain: A $17 Trillion Wipeout

The selloff is not just crypto. U.S. stocks have lost huge value. The “Magnificent Seven” tech giants – Nvidia (NVDA), Google (GOOG), Microsoft (MSFT), and others – have shed $17 trillion from peaks.

Bitcoin hit an all-time high of $126,000 in early October. Now it’s down 45%. Gold is off 20%, silver 45%. Tech stocks are in double-digit drops.

• Nasdaq 100: In correction, down over 10% from January high
• S&P 500: Down 8.5%, nearing correction

Bonds are hurting too. The iShares 20+ Year Treasury Bond ETF (TLT) fell 0.3% Friday and 5% in the past month. The classic 60/40 stock-bond portfolio is failing as yields rise.

Weekly Pattern Tied to Middle East Conflict

This week fits a pattern since the Middle East conflict started in late February. Mondays bring relief rallies of about 3%. Then, profit-taking leads to weakness. By Thursday and Friday, selling picks up as investors cut risk before the weekend. Fading hopes for the Strait of Hormuz to reopen fully add to fears.

A Bright Spot: Stablecoins Go Mainstream

Not all crypto news is bad. Stablecoins are growing fast. They are becoming key parts of finance. North America leads with strong rules and big players.

We are in the “institutionalization era” for stablecoins. Regulated ones like USDC, RLUSD, and PYUSD are winning market share. RLUSD hit $1 billion market cap in its first year.

Institutions want clear rules and safety. Stablecoins now power payments, trading, and more. This could make crypto more stable long-term.

Cyber Risks in the New AI Era

One worry: AI models that find software bugs fast. They could boost cyber attacks. This might spark a cyber arms race. Crypto firms must stay ahead on security.

What’s Next for Bitcoin and Crypto Stocks?

The market rout shows how crypto ties to stocks and global events. Bitcoin below $66K tests support levels. Watch Fed speeches, oil prices, and Middle East news.

Miners and stocks like Coinbase and MicroStrategy could bounce if risk appetite returns. Stablecoins offer hope for steady growth.

Investors: Diversify, watch yields, and stay informed. Crypto’s volatility is high, but so is its potential.

Will Bitcoin rebound soon? Share your thoughts in the comments.