Bitcoin (BTC) plunged beneath the $70,000 mark on Jan. 5, shedding roughly 8% over the past 24 hours in its steepest drop since early November 2024.
At the time of writing, the world's largest cryptocurrency, often dubbed "King Crypto," was changing hands at $69,398.37, leaving traders on edge as market volatility returned in force.
The sell-off sent shockwaves across the crypto sector, dragging major blockchain and fintech stocks into the red as the U.S. market opened.
Related: 'Big Short' Michael Burry sends chilling warning after Bitcoin plunge
Crypto stocks sink across the board
Charts painted a sea of red for publicly listed crypto companies.
Robinhood Markets (NASDAQ: HOOD) opened with a slide of 2.68% at $78.46 as investors awaited the firm's fourth quarter and full-year 2025 earnings on Feb. 10. Robinhood is a U.S. fintech firm offering commission-free stock, options, and crypto trading through its mobile app.
Analysts were divided: while Truist Securities reiterated its "Buy" rating with a $155 price target, Piper Sandler warned of near-term headwinds, including slowing crypto trading volumes, waning sports-related revenue, and fading retail momentum.
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Coinbase (NASDAQ: COIN), the largest crypto exchange in the U.S., fell 5% to $160.08 after the opening bell.
This comes at a time when the company is facing a new legal battle. The Nevada Gaming Control Board filed a lawsuit on Feb. 4, alleging that certain event contracts on Coinbase's prediction market platform amount to illegal sports wagering.
Circle Internet Group (NASDAQ: CRCL), the issuer of the world's second-largest stablecoin USDC, fell by 4.66% to trade at $52.54.
Meanwhile, Block (NYSE: XYZ), the Bitcoin-focused fintech firm led by Twitter co-founder Jack Dorsey, was down 2.61% and was trading at $55.90.
Bitcoin mining stocks were facing the heat as well.
TeraWulf (NASDAQ: WULF) was down 5.63% to trade at $13.10. Just a day earlier, the stock had seen an 11% jump in pre-market trading after announcing two brownfield industrial sites on Feb. 2.
Riot Platforms (NASDAQ: RIOT), the Bitcoin mining giant, which recently bagged a major partnership with semiconductor giant AMD (NASDAQ: AMD) for its AI expansion plans, was down 5.94% to trade at $13.30.
Related: Bitcoin Mining: Everything Investors Should Know
This story was originally published by TheStreet on Feb 5, 2026, where it first appeared in the Trading News & Analysis section. Add TheStreet as a Preferred Source by clicking here.
