MicroStrategy and Coinbase Slide as Bitcoin Nears $95K – Traders Brace for Volatility

Crypto Stocks Slide as Bitcoin Drops Below $96K

Cryptocurrency-linked stocks fell Thursday, reflecting Bitcoin’s pullback below $96,000. MicroStrategy (MSTR) dropped 3%, while Coinbase (COIN) and Riot Platforms (RIOT) each lost around 2%. Bitcoin’s decline, coupled with broader weakness across digital assets, continues to weigh on sentiment.

What’s Pressuring the Market?

Bitcoin fell nearly 4% to trade at $95,522 Thursday afternoon, dragging down the broader crypto market by a similar margin. Ether, Solana, and Dogecoin also declined. MicroStrategy’s announcement of another $561 million Bitcoin purchase highlights its commitment to accumulating the asset, yet plans to issue additional shares introduced uncertainty. Traders are increasingly focused on MicroStrategy’s activity as a market catalyst.

Adding to the volatility, $43 billion in Bitcoin and Ether derivatives are set to expire Friday. Traders anticipate that market makers could adjust positions, increasing short-term price swings.

ETF Outflows and Bearish Sentiment

Outflows from Bitcoin ETFs have exacerbated downward pressure. Over the past few days, hundreds of millions of dollars have exited key products, signaling caution among investors. BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin Fund led the declines. Meanwhile, Ethereum ETFs showed some inflows, though they too experienced net outflows by the end of the week.

Wider Crypto Weakness

The total cryptocurrency market value slipped to $3.31 trillion as losses spread across the sector. Bitcoin, down 12% from its December high, continues to hold gains for the year but faces near-term selling pressure. Ether dropped 3.7%, trading significantly below its peak, while altcoins like Solana and Cardano mirrored the trend with overnight losses.

Only a handful of tokens showed gains, with Bitget Token (BGB) standing out after surging more than 24%. Most top-tier cryptocurrencies posted losses, reflecting the risk-off sentiment dominating the market.

Short-Term Outlook

With derivatives expirations looming and ETF outflows persisting, the near-term outlook for Bitcoin remains bearish. MicroStrategy’s ongoing purchases may offer support, but the broader market appears fragile. Traders should brace for volatility, especially if Bitcoin struggles to maintain levels above $95,000. Monitoring ETF flows and derivatives activity will be critical for assessing the next move.

More Information in our Economic Calendar.