Canaan Inc. (CAN), a leading provider of cryptocurrency mining equipment, saw its stock plummet 5.38% in pre-market trading on Tuesday. This sharp decline follows a broader downturn in the cryptocurrency market, with Bitcoin falling below $105,000 and Ethereum dropping to $3,530.

The pre-market plunge comes on the heels of a 6.15% drop in Canaan's stock price during the previous trading session. As a major player in the crypto mining hardware industry, Canaan's fortunes are closely tied to the overall health of the cryptocurrency market. The recent slump in Bitcoin and Ethereum prices could potentially impact demand for Canaan's mining equipment, as lower cryptocurrency values may reduce the profitability of mining operations.

Canaan is not alone in facing downward pressure, as other crypto-related stocks have also experienced significant declines. Companies such as Cipher Mining, TeraWulf, and BTBT have seen drops ranging from 3% to 7%. This sector-wide downturn underscores the strong correlation between cryptocurrency prices and the performance of related stocks, highlighting the volatile nature of the crypto-linked equity market.