On Tuesday, cryptocurrency-related stocks experienced a significant selloff as investors retreated from technology stocks and high-risk sectors. Multiple cryptocurrency companies saw substantial stock price declines, including Coinbase, eToro, Robinhood, Bullish, Galaxy Digital, Strategy, SharpLink Gaming, Bitmine Immersion, DeFi Development, and Circle.

Bitcoin prices briefly fell below $113,000, while Ethereum declined more than 6% at one point, trading around $4,100.

Market analysts noted that the cryptocurrency market is particularly sensitive to technology stock volatility due to its characteristics of being dominated by growth investors, driven by narrative-based pricing, high speculative nature, and preference for low interest rate environments.

Investors are closely monitoring the Federal Reserve's annual economic symposium at Jackson Hole for insights into future policy direction. Market participants anticipate that if Fed Chair Powell delivers dovish signals, cryptocurrencies could experience a rebound.