Strategy Crashes 10%, Coinbase Falls 6% as Bitcoin Breaks $70,000 Floor in Day-Two Selloff
Strategy stock dropped 10% and Coinbase fell 6% as Bitcoin broke below the $70,000 support level, marking a second consecutive day of declines. Bitcoin is down 14% this month and 36% over the past year, triggering broader crypto-related selloffs in equities tied to its price movements.
Strategy shares fell 10% to around $135, while Coinbase stock dropped 6% to approximately $172, following Bitcoin’s dip below $70,000. Bitcoin’s price hit $67,200, marking an 8% weekly loss and a 14% monthly decline, with a 36% drop over the past year. The selloff began after Strategy sold 32 Bitcoin between May 26 and May 31, its first sale since December 2022, raising $2.5 million. The move was framed as a strategy to maximize Bitcoin-per-share, with proceeds funding dividends, but it triggered further declines in both stocks. Strategy’s stock has fallen 16% over two sessions, while Coinbase has lost 10%, reflecting their direct exposure to Bitcoin’s price. Coinbase reported a Q1 2026 loss of $1.49 per share, with revenue down 31% year-over-year, and announced a 14% headcount reduction to cut costs. Analysts remain divided, with Mizuho lowering its price target for Strategy to $265 while maintaining an Outperform rating. Polymarket odds suggest a 53% chance Strategy will repurchase Bitcoin between June 2 and June 8, potentially stabilizing sentiment. Bitcoin’s technical breakdown has overshadowed fundamentals, with retail trading volumes remaining subdued. Investors will watch for Bitcoin’s next move, potential analyst revisions, or a Form 4 filing from Strategy, which could shift the narrative before the week ends.
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