Crypto Stocks Plunge as Bitcoin Dips Below $110K - Temporary Setback or Major Correction?

Crypto markets hit turbulence as Bitcoin retreats from recent highs.

The Domino Effect

Digital asset stocks tumble across the board as Bitcoin loses its grip on the $110,000 level. Mining companies and crypto-focused equities follow the flagship cryptocurrency downward in a classic risk-off move.

Market Mechanics at Play

Traders liquidate positions while institutional players reassess exposure. The correlation between Bitcoin and crypto equities remains tight—when BTC sneezes, the entire sector catches a cold.

Looking Beyond the Numbers

Short-term volatility masks long-term potential. Market corrections shake out weak hands and create entry points for strategic investors. Traditional finance veterans might clutch their pearls, but crypto natives see opportunity in the chaos.

Another day, another chance for Wall Street to misunderstand digital assets while counting their commission fees.

Bitcoin price dips

Bitcoin’s value fell to under $105,000 on October 10 as a crypto bloodbath wiped out over $19 billion in Leveraged positions. However, bulls quickly rallied to above $115,000, as sentiment held bullish earlier in the week.

The top crypto has again pared gains as its price falls below $108k – with negative action cascading to shares of publicly traded companies. With these public companies heavily tied to crypto mining, treasury holdings and such, the dip in BTC reflects in their trading.

Top crypto stocks plummet

Bitfarms Ltd. (BITF), whose shares had tumbled 14.4% by midday trading, led the carnage. The Toronto-based miner’s stock hovered around CAD 7.75. Meanwhile, MARA traded at $20.28, about 11% down on the day, and Nasdaq-listed Riot Platforms (RIOT) slid nearly 10%, with its stock price dipping to $20.

Other crypto stocks feeling the heat include Hut 8 Mining Corp. (HUT), down 6% to $50.77. Elsewhere, Strategy, the world’s largest corporate holder of BTC, traded 3.5% down at $286.47. Michael Saylor shared the chart below showing MSTR performance compared to other stocks and BTC.

The top three performers on this chart represent Digital Credit $MSTR, Digital Intelligence $NVDA, and Digital Capital $BTC. pic.twitter.com/cdSa9f3HVG

NYSE-listed Circle Internet Group Inc, the company behind the USDC stablecoin, was down 3.8% at $129.37. The stock of Coinbase, the U.S.-based crypto exchange behemoth, hovered around $333, with its shares down 0.98%. 

Macroeconomic factors continue to hinder bulls, the crypto market remains largely upbeat ahead of potential interest rate cuts by the Federal Reserve. In this case, correlation with equities and vulnerability to external shocks will likely provide the backdrop for short-term Bitcoin price trajectory.