Investing.com -- Crypto-related stocks slumped in premarket trading Tuesday following a sharp sell-off in Bitcoin and broader crypto markets.
The world’s largest cryptocurrency has fallen over 7% to $87,608 in the last 24 hours as of 12:25 pm ET, marking a three-month low.
The decline comes as a weakness in technology stocks and a stronger Japanese yen fueled concerns of risk aversion, reminiscent of last August.
Shares in Strategy (NASDAQ:MSTR) fell more than 11%, while Coinbase (NASDAQ:COIN) and Riot Platforms (NASDAQ:RIOT) plunged over 8% and 9%, respectively. In addition, Applied Digital Corp. is down more than 13% on the day.
Bitcoin’s dip was tracked by other cryptocurrencies, with XRP sinking over 9% to $2.22.
Ether fell more than 8% and Solana tumbled 6%.
Traditional markets continue to set a risk-off tone. Nasdaq Composite is down 1.3%, extending a three-day losing streak. The index has fallen more than 4% since Feb. 18.
Meanwhile, the Japanese yen strengthened to 149.76 per USD, approaching Monday’s near three-month high of 148.84. The currency has gained nearly 6% over six weeks amid growing expectations of a Bank of Japan (BOJ) rate hike.
The yen’s surge and BOJ rate speculation have drawn comparisons to last July when similar moves triggered broad risk aversion, sending Bitcoin plunging from around $65,000 to $50,000 in a matter of days.
Bitcoin and other digital assets rallied following Donald Trump’s election victory in November, driven by expectations that his administration would take a more favorable stance on crypto. However, momentum has slowed as traders shift their attention to global macroeconomic and geopolitical factors, with crypto markets increasingly moving in tandem with US equities.
Adding to the pressure, a major security breach last week saw hackers steal $1.5 billion in digital assets from Dubai-based platform Bybit, further dampening sentiment in the industry.