As the Nasdaq Falls, These Crypto Stocks Are on the Ropes

Futures markets signaled a potential new leg lower for Wall Street on Monday morning, as investors continued to grapple with all the uncertainties about inflation, interest rates, geopolitics, and other macroeconomic factors. The Nasdaq Composite (NASDAQINDEX: ^IXIC) saw its futures contracts fall nearly 3% in premarket trading as of 8:15 a.m. ET, and if the index were to open lower by the same amount, it would represent a return to levels not seen in more than a year and a half.

As bad as the losses in the stock market appeared to be, they paled in comparison to declines in cryptocurrency prices over the weekend. With key digital assets like Bitcoin (CRYPTO: BTC) and Ether (CRYPTO: ETH) down 20% to 30% from where they were just last Friday, crypto investors are bracing for another round of the extreme volatility that these markets have seen throughout their histories. Yet those losses are also bleeding into the stock market, where MicroStrategy (NASDAQ: MSTR) and Coinbase Global (NASDAQ: COIN) are poised to open sharply lower as well.

Shares of MicroStrategy were lower by 25% on Monday morning. The technology company's fundamental business has little to do with blockchain investments, but MicroStrategy has been vocal about its bullish views on Bitcoin and has put its money where its mouth is, taking on leverage to amass a substantial position in the cryptocurrency on its balance sheet.

Source Fool.com