Crypto Stocks Plunge as Bitcoin Falls Ahead of Senate Vote

Crypto-linked stocks saw significant drops on Tuesday as Bitcoin's price declined and investors awaited a Senate vote on the Clarity Act. Coinbase Global shares fell 7% to $178, while Strategy, formerly known as MicroStrategy, slid 5% to $130.32.

The Senate is set to vote at 2:15 PM ET on whether to advance the Clarity Act, legislation intended to create a clearer federal framework for digital assets. The bill needs 60 votes to clear the procedural hurdle, but its path remains uncertain due to ongoing political disagreement.

Cathie Wood's Ark Invest sold shares of Coinbase and Circle Internet Group on Monday, which may have contributed to the decline in crypto-linked stocks. However, analysts framed Tuesday's selloff as a near-term reaction rather than a verdict on crypto's longer-term outlook.