Shares of Strategy (NASDAQ:MSTR | MSTR Price Prediction) are down 10% in mid-morning trading Tuesday, while Coinbase (NASDAQ:COIN) stock is off 6%. The catalyst is the tape under both names: Bitcoin (CRYPTO:BTC) has broken below $70,000.
Strategy stock is trading around $135 after a Monday close of $149.78. Coinbase stock is changing hands near $172 versus Monday’s $182.61 close. Bitcoin last printed at approximately $67,200, down 5% over the past 24 hours.
This is day two of the Saylor-triggered crypto asset selloff that yesterday’s 24/7 Wall St. piece flagged, and the $70,000 zone explicitly identified as the watch level has now failed.
Bitcoin Loses the $70,000 Floor
Bitcoin is now down 8% on the week and 14% on the month. Year to date (YTD), BTC has shed 23%, and the one-year drop now sits at 36%.
That technical breakdown matters because both Strategy and Coinbase carry direct beta to spot Bitcoin. Strategy’s earnings are sensitive Bitcoin price moves, and Coinbase transaction revenue tends to move in lockstep with retail trading volumes.
Two Sessions, Real Damage
Strategy stock has slid 16% across the two-session stretch from Friday’s close near $159. Coinbase stock has given back 10% over the same window.
Yesterday’s catalyst was Strategy’s first Bitcoin sale since December 2022: 32 BTC sold between May 26 and May 31 for approximately $2.5 million. Executive Chairman Michael Saylor framed it as a move to “maximize Bitcoin-per-share,” with Strategy CEO Phong Le indicating that proceeds would fund preferred dividends, including the STRC 12% yield.
Fundamentals Versus the Tape
The fundamental case from yesterday hasn’t shifted. The 32 BTC sale is less than 0.004% of Strategy’s 843,706 BTC stack, and Polymarket prices the probability of an MSTR margin call in 2026 at just 5%. That limits the structural forced-selling thesis.
However, sentiment is overriding the math. Reddit chatter on Strategy stock has stayed bearish to very bearish through the overnight session, with the WallStreetBets thread “MSTR sold 32 BTC- more to come?” climbing to 447 upvotes by Tuesday morning. Mizuho also cut its MSTR price target to $265 from $320 yesterday while keeping its Outperform rating.
Fundstrat’s Tom Lee called Monday’s reaction “rage quitting” and “a classic market bottom.” Today’s continued slide tests that call.
Coinbase Carries Its Own Baggage
Coinbase stock is down 23% YTD. The structural sensitivity to the BTC tape was visible in Q1 2026 results, where Coinbase posted a GAAP net loss of $1.49 per diluted share on revenue of $1.41 billion, down 31% year over year (YoY).
Coinbase’s management leaned on a 14% headcount reduction targeting roughly $500 million in annualized cost savings. With Bitcoin breaking technical support, retail spot volumes can stay muted into the back half of Q2 2026.
What to Watch
The Polymarket window for a fresh Strategy Bitcoin purchase between June 2 and June 8 is now open, with current odds of 53% on any announcement. A buy-side Form 4 this week could reset the narrative.
Investors can watch where Bitcoin stabilizes, whether Mizuho’s price target cut triggers follow-on analyst revisions, and how Strategy and Coinbase manage their respective positioning into the close. The fundamental read still favors the overdone thesis, but traders are voting otherwise.
A Form 4 filing, a Bitcoin bounce, or a fresh analyst note could move these names sharply in either direction before the week is over.
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