Crypto stocks dropped as crypto fell on reduced U.S. rate cut bets, balancer hack. Forward fell 18%; Hut 8 fell 13%; CEA Industries fell 11%; Bakkt Holdings and Sequans Communications fell 9%; Figure fell 6%; Strategy fell 5%; Bit Digital, SharpLink Gaming, Tron, and Coinbase fell 4%; Bitfarms, BitMine, and Riot Platforms fell 3%; MARA Holdings and TeraWulf fell 2%.

Bitcoin fell to more than 4-month low as reduced expectations for further U.S. interest rate cuts prompt investors to pull back from riskier assets.

The repricing of rate expectations comes after Fed Chair Jerome Powell said another rate cut in December was not a foregone conclusion at last week's meeting.

A hack of finance protocol Balancer has also hit the crypto sector, draining more than $100 million in digital assets. The selloff in cryptocurrencies is effectively unwinding over-leveraged positions accumulated during October, resulting in a much-needed market correction.

Bitcoin fell to a low of $103,139.40. Ethereum also hit a three-month low of $3474.67.