• Crypto-linked stocks fell sharply as Bitcoin dropped to seven-month lows
  • The sell-off was amplified by thin liquidity and cooling ETF inflows
  • Broader risk-off sentiment driven by macroeconomic concerns continues to pressure digital assets

Shares of major cryptocurrency companies tumbled on Thursday as Bitcoin broke below the key $90,000 psychological level before staging a partial recovery to around $91,000. The decline triggered a cascade of stop-losses and heightened selling pressure across the crypto equity space.

Coinbase Global led the declines among larger-cap names, falling 4.9% as trading volumes on the platform likely suffered from the broader market weakness. Bitcoin mining companies saw even steeper drops, with Bitfarms down 7.5% and Marathon Digital Holdings declining 6.6%. MicroStrategy, the enterprise software firm known for its substantial Bitcoin holdings, plunged 10.3% as its treasury strategy faced renewed scrutiny amid the price decline.

Trading desks reported that thin liquidity conditions exacerbated the move, with one market maker describing the environment as "fragile" given recent outflows from spot Bitcoin ETFs. "The optimism around regulatory breakthroughs has faded, and we're seeing the reality of a risk-off environment set in," said a trader at a major brokerage, who asked not to be named discussing client flows.

Other mining stocks including Riot Platforms and Hut 8 Mining fell 3.7% and 3.3% respectively, underperforming the broader technology sector. The declines come amid persistent concerns about higher-for-longer U.S. interest rates and cooling institutional interest in digital assets.

Representatives for Coinbase and Marathon Digital did not immediately respond to requests for comment on the stock movements. A spokesperson for MicroStrategy declined to comment on daily price action, referring instead to the company's long-term Bitcoin acquisition strategy.

The sell-off follows familiar patterns in crypto markets, where sharp drawdowns often follow periods of rapid gains. Market participants are now watching ETF flow data and broader macroeconomic developments for signs of stabilization, though few are predicting an immediate rebound given current conditions.

Correction: An earlier version of this article misstated the percentage decline for Hut 8 Mining. The stock fell 3.3%, not 3.8%.