Crypto Stocks Sink as Bitcoin Recovers From Weekend Massacre

TLDR

• Bitcoin recovered to $77,000 Monday after weekend crash to $74,500, its lowest point since early April 2025
• Strategy (MSTR) shares tumbled 6.7% while Galaxy Digital (GLXY) plunged over 7% in pre-market session
• Market volatility spiked with VIX up 10% and Volmex index surging from 40 to 50 in one week
• Gold dropped 4% to $4,700 and crude oil fell 5% to $62 per barrel as risk assets sold off
• Dollar weakness on DXY index to 97 showed inverse correlation with bitcoin price movement

Bitcoin climbed back toward $77,000 on Monday morning after a sharp weekend selloff that sent the cryptocurrency to its lowest level in months. The recovery came as the U.S. dollar weakened and market volatility remained elevated.

The largest cryptocurrency dropped to $74,553 over the weekend, marking its lowest intraday price since April 7, 2025. Bitcoin was trading around 1% higher near $77,000 as U.S. markets prepared to open Monday.

The selloff followed President Donald Trump’s Friday announcement of Kevin Warsh as his nominee for Federal Reserve chair. The news sent shockwaves through crypto markets over the weekend.

Crypto Stocks Extend Losses

Strategy (MSTR) fell 6.7% in pre-market trading Monday. The company holds the largest public bitcoin position of any traded firm.

Strategy Inc, MSTR

Galaxy Digital (GLXY) dropped more than 7%. Coinbase Global (COIN) declined 4.1%.

Bitcoin mining companies also faced pressure. MARA Holdings (MARA) decreased 5.5%. Bit Digital (BTBT) fell 5.4%.

Bitmine Immersion Technologies (BMNR) led declines with shares down nearly 11%. IREN (IREN) and Cipher Mining (CIFR) both lost approximately 4%.

The Volatility S&P 500 Index (VIX) jumped 10% on Monday. The fear gauge reflected growing uncertainty among traders.

The Volmex implied volatility index surged over the past week. It climbed from 40 to 50, indicating expectations for larger price swings ahead.

Broader Market Weakness

Precious metals came under selling pressure alongside crypto assets. Gold fell 4% to $4,700 per ounce. Silver declined 4% to $82 per ounce.

Energy markets weakened as well. West Texas Intermediate crude oil futures dropped 5% to $62 per barrel.

U.S. equity futures showed modest losses. The Invesco QQQ ETF (QQQ) fell less than 1% in pre-market activity.

Dollar Decline Supports Bitcoin

The DXY index retreated slightly to 97 on Monday. The index measures dollar strength against major global currencies.

CoinDesk Research identified a clear inverse relationship between bitcoin and the DXY last week. Bitcoin prices rose as the dollar weakened Monday morning.

The correlation suggested currency dynamics played a role in bitcoin’s recovery. Traders watched the dollar closely for direction.

Market participants continued processing the Fed chair nomination news. The announcement raised questions about future monetary policy direction.

Bitcoin’s bounce from weekend lows offered some relief to crypto markets. The cryptocurrency held support above $75,000 after testing lower levels.

Crypto-related stocks lagged bitcoin’s recovery. The disconnect highlighted ongoing concerns about equity valuations and market volatility.

Trading activity remained elevated across digital asset markets. Investors positioned for potential continued volatility in coming sessions.

The VIX surge indicated broader market uncertainty extended beyond crypto. Traditional and digital assets both faced headwinds from policy uncertainty.

Bitcoin mining stocks particularly struggled as the underlying cryptocurrency showed weakness. The sector remained sensitive to bitcoin price movements and operational costs.

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