Crypto-linked stocks fell sharply Tuesday morning as Bitcoin declined and investors awaited a critical Senate vote on crypto regulation, with the Federal Reserve’s rate decision also due Wednesday.
Coinbase Global shares fell 7% to $178.
Strategy, formerly known as MicroStrategy, slid 5% to $130.32.
MARA Holdings dropped a more modest 2% to $11.2.
Bitcoin was down 3.1% over the past 24 hours, trading at $76,180.
The Senate vote is the day’s key catalyst
The Senate is scheduled to vote at 2:15 PM ET on whether to advance the Clarity Act, legislation intended to create a clearer federal framework for digital assets.
The bill needs 60 votes to clear the procedural hurdle, and its path remains uncertain given continued political disagreement.
Even if the vote passes, it would not enact the bill into law; it would only allow the legislation to advance in the Senate.
A failed vote could leave the industry’s regulatory questions unresolved for longer.
Why the stocks are falling harder than Bitcoin itself
The iShares Bitcoin Trust ETF, which tracks Bitcoin directly, fell 3% to $43.19, roughly in line with Bitcoin’s own decline.
But Strategy and Coinbase fell by wider margins, 5% and 7% respectively, than Bitcoin’s 3% drop.
Strategy’s business is built around its large Bitcoin holdings, which tends to amplify the stock’s moves relative to Bitcoin’s own price swings.
MARA Holdings also carries Bitcoin exposure through its mining operations and holdings, though its decline was more contained than Coinbase’s or Strategy’s.
The broader market fared better as the S&P 500 index fell only 0.5%, showing that crypto-linked names witnessed a stronger bout of selling.
Ark Invest trims Coinbase
Cathie Wood’s Ark Invest sold shares of Coinbase, Circle Internet Group, Bullish, Bitmine Immersion Technologies and its own spot Bitcoin ETF on Monday, as crypto-related stocks advanced.
According to the firm’s latest trade disclosure, Ark Invest sold 36,628 Coinbase (COIN) shares, worth about $7 million based on Monday’s closing price of $191.45. Coinbase shares gained 9.24% during the session.
Ark Invest also sold 142,350 shares of Circle Internet Group (CRCL) across two funds, valued at roughly $13.8 million. Circle shares closed 7.53% higher at $97.42.
What comes next
Coinbase, as one of the largest US cryptocurrency exchanges, stands to benefit most directly from a clearer regulatory framework, which could support more institutional participation in the sector.
Investors are now watching two things over the next two days: whether the Senate advances the Clarity Act this afternoon, and how the Federal Reserve’s rate decision Wednesday affects broader risk appetite.
Both outcomes are likely to move crypto-linked stocks more than the market overall.
Analysts framed Tuesday’s selloff as a near-term reaction rather than a verdict on crypto’s longer-term outlook.
If the Clarity Act eventually clears Congress and Bitcoin stabilizes, Coinbase, Strategy and MARA could all benefit from clearer rules and renewed institutional interest.
Investors holding crypto-linked stocks are generally advised to keep position sizes moderate given that volatility, rather than treat today’s price action as a signal to go all in either way.
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