Canaan Inc. (CAN), a leading provider of supercomputing solutions, saw its stock plummet 7.32% in overnight trading on Tuesday, as the broader cryptocurrency sector faced significant headwinds. The sharp decline came as Bitcoin, the world's largest cryptocurrency, dropped below the $108,000 mark, sending shockwaves through crypto-related stocks.

The sell-off in crypto shares was widespread, with several companies in the sector experiencing notable declines. While Canaan led the pack with its over 7% drop, other crypto-linked stocks also felt the pressure. Upexi and BitMine saw declines of more than 3%, while industry giants such as Riot Platforms, SBET, MARA, and GameSquare all registered drops exceeding 2%.

The primary catalyst for this sector-wide downturn appears to be Bitcoin's price action. The flagship cryptocurrency fell 3% intraday, breaking below the psychologically important $108,000 level. This movement in Bitcoin's value often has a ripple effect on companies like Canaan, whose business models are closely tied to the cryptocurrency mining industry. As Bitcoin's price decreases, the profitability of mining operations can be impacted, potentially affecting the demand for mining equipment and services provided by companies such as Canaan.