Crypto Market Selloff Drags Down Coinbase and Bitcoin Miners Amid Mounting Trade Tensions

The digital assets market experienced widespread losses on Monday, triggering a sharp decline across crypto-linked equities and investment vehicles. The downturn reflects growing investor anxiety as macroeconomic headwinds and regulatory uncertainty continue to weigh on the sector.

Coinbase Tumbles as Market Cap Shrinks

Coinbase Global suffered a significant setback, falling more than 6% during Monday's trading session. The cryptocurrency exchange operator has now shed 25% of its value over the past month, with shares trading around $161. This decline mirrors broader weakness in the digital assets ecosystem.

The total cryptocurrency market capitalization contracted by over 3% in the last 24 hours, settling at $2.23 trillion. Paradoxically, trading volume surged by 107% to reach $102 billion within the same period, indicating that market participants are actively repositioning amid intensifying selling pressure. The Fear and Greed Index currently signals that the market has entered "Extreme Fear" territory.

MicroStrategy and Bitcoin Miners Face Pressure

MicroStrategy, the largest corporate holder of Bitcoin, saw its shares drop nearly 6% during the session despite recently acquiring 592 BTC for approximately $39.8 million at an average price of $67,286 per coin. The stock was trading at $123.19 at press time, down roughly 24% over the past month.

Bitcoin mining companies weren't spared from the selloff. Riot Platforms declined about 2%, though it has posted gains over the past five days. However, the stock remains down 10% month-over-month. Hut 8 fell by 2%, while MARA Holdings dropped approximately 3%.

The broad-based decline accelerated as Bitcoin slipped below the $64,500 level, marking a 27% decline over the past 30 days and pushing the leading cryptocurrency toward the lower boundary of its recent trading range. This weakness rippled through crypto-linked equities and exchange-traded funds as risk appetite diminished across financial markets.

Ethereum Posts Worst Annual Start on Record

Ethereum declined 4% over the last 24 hours, contributing to what is now the worst start to a year on record for the second-largest digital asset. While Bitcoin is down approximately 26% through the first 50 days of 2025, Ethereum has plunged 38% during the same timeframe.

The latest wave of volatility followed weekend comments from President Donald Trump, who announced plans to raise his newly imposed global tariff level to 15% from 10%. This decision came after the US Supreme Court struck down most of the tariffs he had implemented last year.

Robinhood and Galaxy Digital Join the Retreat

Other crypto-exposed companies posted notable losses. Robinhood Markets, which generates substantial revenue from cryptocurrency trading, fell about 5%. The stock has declined more than 32% over the past month and was trading at approximately $72.17 at press time. Galaxy Digital dropped nearly 4%, trading at $20.38.

Bitcoin-linked exchange-traded products also weakened considerably. The ProShares Bitcoin Strategy ETF (BITO) and iShares Bitcoin Trust (IBIT) each fell more than 4%. Data indicates that investors have withdrawn nearly $1 billion from these products in February alone, following a $1.6 billion selloff in January.

Broader Market Weakness Compounds Crypto Decline

The cryptocurrency selloff coincided with broader equity market declines. The S&P 500 and Nasdaq 100 each dropped more than 1%, driven by renewed weakness in software and private equity stocks. The iShares Expanded Tech-Software ETF plummeted another 5% to a fresh 52-week low, now down nearly 35% since October.

Coinasity's Take

The current market environment underscores the persistent correlation between cryptocurrency assets and traditional risk markets. With macroeconomic uncertainty intensifying—particularly around trade policy—digital assets are struggling to maintain their footing. The combination of weakening institutional appetite, evidenced by sustained ETF outflows, and extreme fear sentiment suggests the market may need a fundamental catalyst to reverse course. Until clarity emerges on the regulatory and economic fronts, volatility is likely to remain elevated across crypto-linked securities.