TLDR
- Coinbase fell ~4% in pre-market trading as Bitcoin dropped to around $76,890, dragging crypto stocks lower.
- The Senate was scheduled to vote Tuesday on the Clarity Act, a key crypto regulation bill, with passage odds falling to 19% from 31%.
- Cathie Wood’s ARK Invest sold Coinbase, Bullish, Circle, and Bitmine on Monday ahead of the vote.
- Compass Point upgraded Coinbase from Sell to Neutral, raising its price target to $177, still below where the stock had been trading.
- The Federal Reserve’s interest rate decision, also due Wednesday, added to the risk-off mood in markets.
Coinbase (COIN) dropped roughly 4% in pre-market trading on Tuesday, with the stock sitting at $183.11, down from a previous session high of $193.22.
The sell-off was driven by a sharp pullback in crypto prices. Bitcoin slipped to around $76,890, down about 1.6% to 2.9% depending on the source and timeframe. Ethereum fell 1.9% to $2,475. XRP edged 0.2% lower to $1.40.
Bitcoin is still up 31% since the start of July, but it remains 12% down on the year.
The timing matters. The Senate was set to vote Tuesday afternoon on the Digital Asset Market Clarity Act, legislation that would establish clearer token classifications and reduce regulatory uncertainty for crypto companies.
Passing the procedural vote requires 60 votes, and that threshold was far from certain. Prediction market Polymarket put the odds of the bill passing this year at just 19% on Tuesday, down from 31% on Monday. GOP senators made an 11th-hour push to win Democratic support, but the outcome remained unclear.
That uncertainty hit crypto markets hard in the morning session.
Cathie Wood Sells Into the Uncertainty
ARK Invest moved quickly. Cathie Wood’s funds sold crypto-related positions on Monday, according to trading notifications. The sales included Coinbase, Bullish (owner of CoinDesk), stablecoin issuer Circle Internet Group, and Ethereum treasury company Bitmine Immersion Technologies.
Strategy (MSTR), the largest corporate holder of Bitcoin, was also down 3.8% in pre-market trading after gaining 4.6% the session before.
The broader crypto and blockchain stock sector fell in tandem, mirroring the drop in digital asset prices.
Fed Meeting Adds to the Pressure
Compounding the Clarity Act nerves was the Federal Reserve’s interest rate decision, due Wednesday. That kept investors cautious and pushed them away from risk assets in pre-market hours.
Major US indexes were also in the red. The S&P 500 fell 0.1%, the Dow Jones dropped 0.3%, and the Nasdaq was down 0.1%.
On the analyst side, Compass Point upgraded Coinbase from Sell to Neutral in the previous session, lifting its price target to $177. That target still sits below where the stock had been trading, reflecting a cautious view tied to a possible Bitcoin cycle bottom rather than a bullish thesis.
Coinbase’s 52-week low stands at $139.11. Tuesday’s pre-market price of $183.11 puts it well above that floor but below the previous session’s peak.
The session high was $193.22, and the day’s low touched $180.29 in pre-market trading.
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