Bitfarms Inc. (NASDAQ:BITF) shares are trading lower on Tuesday as weakness in the cryptocurrency market drove down valuations of crypto-linked stocks.
What To Know: The decline was tied directly to a broad sell-off in digital assets, with Bitcoin sliding 5.3% and breaking below its 50-day moving average, a technical level that many traders view as an important indicator of near-term momentum. The move erased part of Bitcoin's recent rally and triggered additional losses across the sector.
Altcoins added to the pressure. Ethereum fell 4.5%, Solana declined 2.7%, and Cardano tumbled more than 6%. The sharp drop across major tokens erased about $110 billion in overall cryptocurrency market capitalization, intensifying concerns that investor sentiment in the space has turned bearish in the short term.
The selloff in crypto coincided with weakness in broader equity markets, particularly in technology stocks. The Nasdaq 100 dropped 1.4% for its worst performance in more than two weeks, while the S&P 500 slipped 0.5% and the Russell 2000 lost 0.9%. Losses were concentrated in high-growth and momentum names, with Palantir plunging more than 8% after a strong year-to-date rally.
Investors pointed to two main factors behind the pullback.
First, geopolitical uncertainty increased after peace talks between President Donald Trump, Ukrainian President Volodymyr Zelenskyy and European leaders failed to deliver any breakthrough. Second, markets are awaiting Federal Reserve Chair Jerome Powell's upcoming speech for more guidance on interest rates, leaving traders cautious and pulling risk capital out of more speculative areas such as crypto.
Bitfarms, which derives its performance from its exposure to Bitcoin mining and blockchain infrastructure, fell in line with the broader cryptocurrency downturn. With digital asset prices under pressure and volatility climbing, the company's shares faced renewed selling pressure, reflecting investor concerns about near-term profitability in the sector. The combination of technical weakness in Bitcoin, uncertainty around global markets, and a broader risk-off environment contributed to the decline in Bitfarms stock.
BITF Price Action: BitFarms shares were down 7.15% at $1.278 at publication on Tuesday, according to Benzinga Pro.
Read Next:
Image Via Shutterstock.
