Bitfarms Inc. (BITF) shares dropped sharply on Tuesday, following a major downturn in the cryptocurrency market that pulled down many crypto-related stocks.

The main reason behind the drop was a broad sell-off in digital currencies. Bitcoin, the largest cryptocurrency, fell by 5.3% and slipped below its 50-day moving average — a key technical level that many traders use to track short-term trends. This move erased some of Bitcoin’s recent gains and triggered more selling across the entire crypto space.

Other cryptocurrencies also took a hit. Ethereum dropped 4.5%, Solana fell 2.7%, and Cardano tumbled more than 6%. In total, the crypto market lost around $110 billion in value in just one day. This sudden decline raised fears that investors are turning more cautious and bearish in the short term.

The slump in cryptocurrencies came alongside weakness in the broader stock market. Tech stocks were hit especially hard. The Nasdaq 100 fell by 1.4%, its worst drop in over two weeks. The S&P 500 also dipped 0.5%, while the small-cap Russell 2000 lost 0.9%. High-growth tech stocks, such as Palantir, saw steep declines — Palantir shares dropped more than 8% after a strong run earlier this year.

There were two big reasons behind this market pullback:

1. Ongoing global tensions — peace talks involving former U.S. President Donald Trump, Ukrainian President Volodymyr Zelenskyy, and European leaders didn’t make any progress, adding uncertainty to an already fragile global situation.
2. Investors are waiting to hear from Federal Reserve Chair Jerome Powell about interest rates, making traders nervous and less willing to take risks in markets like crypto.

Bitfarms, a company that earns money by mining Bitcoin and building blockchain infrastructure, was directly affected by this crypto sell-off. As Bitcoin prices fell and market volatility increased, Bitfarms stock followed suit. Investors are now worried about how profitable these companies will be in the near future if crypto prices remain under pressure.

The mix of falling Bitcoin prices, global uncertainty, and a shift away from risky investments caused Bitfarms stock to drop by over 7%, closing at $1.278 on Monday.

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