Bitcoin’s Retreat From $70,000 Drags MSTR, BMNR, ASST, COIN Stocks Lower After Monday’s Rally

• Most crypto-linked equities were trading lower in pre-market on Tuesday.
• Bitcoin was trading at $68,000, retreating after Monday's rally, which lifted crypto-linked equities broadly.
• On-chain analyst James Check said Bitcoin bear market bottoms form when multiple cost-basis models converge and the investor base shifts toward high-conviction holders.

Bitcoin’s (BTC) pullback from near $70,000 weighed on crypto-linked stocks in Tuesday’s pre-market, reversing some of Monday’s rally-driven gains across the sector.

Strategy (MSTR), the largest corporate holder of Bitcoin, closed in the green, up over 6% on Monday after announcing it had bought 4,871 BTC, bringing its total holding to 766,970 BTC. However, MSTR’s stock was down by over 1% in pre-market hours. On Stocktwits, retail sentiment around MSTR moved to ‘bearish’ from the ‘bullish’ zone, while chatter around it remained at ‘high’ levels over the past day.

Bitmine Immersion Technologies (BMNR), the world's largest corporate Ethereum (ETH) treasury, also closed in green, up over 5% after purchasing 71,252 ETH, its largest weekly buying spree this year. During pre-market hours, BMNR’s stock was down by over 1%. On Stocktwits, retail sentiment around BMNR remained in the ‘bearish’ zone, while chatter around it stayed at ‘low’ levels over the past day.

Strive Asset Management (ASST) also closed in green, up over 3% on Monday, after purchasing 113 Bitcoin, bringing its holdings to nearly 14,000 Bitcoin. Following this, ASST’s stock was down by 0.20% in pre-market hours. On Stocktwits, retail sentiment around ASST remained in the ‘bearish’ zone, while chatter around it stayed at ‘low’ levels over the past day.

COIN And EMPD Also Tank 

Coinbase Global (COIN) closed in green, up over 1% on Monday. In pre-market hours, COIN’s stock edged 0.56% lower. On Stocktwits, retail sentiment around the cryptocurrency exchange also remained in the ‘bearish’ zone, while chatter around it stayed at ‘low’ levels over the past day.

Empery Digital (EMPD) closed in green, up over 5% on Monday. EMPD’s stock was down by over 2% in pre-market hours. The company, previously known as Volcon Inc, adopted the Bitcoin treasury strategy in July last year, with the last documented holdings of around $241.58 million in Bitcoin. The retail sentiment around EMPD on Stocktwits remained in the ‘bullish’ zone, while chatter around it remained at ‘normal’ levels over the past day.

Analyst Flags Bear Market Maturation In Bitcoin 

Bitcoin's price was trading at $68,923, down by 0.4% during 24 hours. The retreat came after it traded close to $70,000 on Monday. While the short-term price action remained muted, on-chain analyst and Checkonchain co-founder James Check published a newsletter on Tuesday, saying that Bitcoin bear-market bottoms tend to form when multiple on-chain cost-basis models converge and the investor base shifts toward a uniform cohort of high-conviction holders. Check noted that current conditions suggested that the process was now underway.

Check's analysis noted that, at this stage of the bear market, half of Bitcoin's supply was “underwater” and that approximately 80% of capital was invested at higher prices. He said that by the later stages of a Bitcoin bear market, short-term traders typically exit, leaving only investors who understand “what they own, and why they own it,” a dynamic he described as characteristic of the final chapter before a recovery.

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