Crypto-linked stocks slide sharply in broad risk reversal

Market Overview - The cryptocurrency market has experienced significant sell-offs, with Bitcoin dipping below $95,000, indicating a broader trend affecting speculative plays [1] - The recent market movements are correlated with the NASDAQ, particularly in low liquidity conditions, leading to a disorderly unwind and billions in forced liquidations [2] Structural Stress Indicators - Key indicators of structural stress in the crypto market include negative funding rates, thinning market depth, and net negative ETF flows [2][3] - Regulatory support for crypto has stalled, contributing to underperformance in altcoins, particularly those with substantial year-to-date gains [3] Impact on Crypto-Linked Stocks - The sell-off in cryptocurrencies is adversely affecting the entire digital asset equity sector, particularly fintech companies and crypto treasury plays [4] - Fintech companies such as Coinbase, Robinhood, and Circle have seen significant declines, with Circle down nearly 20% in the past week [5] - Companies holding cryptocurrencies on their balance sheets, like Michael Saylor's strategy and Tom Lee's Bitmine Emerging, are experiencing double-digit percentage losses [6]