A mid-day check shows digital asset stocks broadly lower, with stablecoin issuer Circle (CRCL) leading losses, extending its decline to 13% amid rising competition.
Exchange Coinbase (COIN) slipped 4%, while digital asset investment firm Galaxy (GLXY) fell nearly 5%.
Strategy (MSTR) lost almost 7%, giving back Monday's relief rally after the company unveiled a framework allowing it to sell up to $1.25 billion of bitcoin from its treasury under certain conditions. The firm's preferred shares (STRD, STRK, STRC, STRF) were down 1%-4% across the stack.
Ether treasury firms also traded lower, including BitMine Immersion (BMNR) (-4.4%) and SharpLink (SBET) (-3.2%).
One bright spot defying the decline was tokenization. Figure (FIGR), Mike Cagney's blockchain firm focusing on home equity line of credit financing, jumped 11%, while Cantor Equity Partners II (CEPT) added another 2.5% to yesterday's 20% gain ahead of its planned merger with tokenization platform Securitize.
The Nasdaq 100 and S&P 500 continued to show strength, up 1.5% and 0.7%, respectively. Gold modestly recovered from its dip below $4,000 an ounce earlier today and was 0.3% higher.
The Coinbase Bitcoin Premium has fallen 15% over the past 24 hours and now sits at -110, as Bitcoin slipped below $59,000. The premium has remained in negative territory since the end of April, signaling persistent selling pressure from U.S. investors.
The Coinbase Bitcoin Premium Index measures the price difference between Bitcoin traded on Coinbase, a leading U.S. exchange, and the global market average.
As a result, the index is widely used as a gauge of U.S. capital flows, institutional activity, and overall market sentiment.
Circle (CRCL) shares tumbled as much as 9% in the morning session after a heavyweight group of payments, banking and crypto companies unveiled a new stablecoin that could emerge as one of the biggest challengers yet to USDC's market share.
Open USD is backed by more than 140 companies, including Stripe, Coinbase, Mastercard, Visa, BlackRock, Google and Cloudflare. Unlike most existing stablecoins, Open USD will let participating businesses keep the interest earned on reserves, less a small management fee, while also eliminating minting and redemption fees.
That model takes aim at one of Circle's biggest competitive advantages.
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