Canaan Inc. (CAN), a leading provider of supercomputing solutions for cryptocurrency mining, saw its stock plummet by 5.12% in pre-market trading on Tuesday. The significant drop comes amidst a broader selloff in the cryptocurrency sector, triggered by Bitcoin's fall below the $108,000 mark.

The world's largest cryptocurrency, Bitcoin, experienced a 3% intraday decline, breaking below the psychologically important $108,000 level. This movement in Bitcoin's value has had a ripple effect across crypto-related stocks, with Canaan being one of the hardest hit. The company, whose business model is closely tied to the cryptocurrency mining industry, is particularly sensitive to fluctuations in Bitcoin's price as it can directly impact the demand for their mining equipment and services.

The sell-off in crypto shares was widespread, affecting multiple companies in the sector. While Canaan led the pack with its steep decline, other notable drops included Upexi and BitMine, which fell over 3%, and industry players such as Riot Platforms, SBET, MARA, and GameSquare, all registering drops exceeding 2%. This sector-wide downturn underscores the interconnectedness of cryptocurrency-related businesses and their vulnerability to Bitcoin's price movements.