When Bitcoin (BTC) struggles, the ripple effects hit crypto-adjacent stocks hard. And right now, with Bitcoin trading below $90,000, several companies are experiencing what can only be described as a momentum meltdown.
Sure, everyone's talking about Michael Saylor's Strategy Inc. (MSTR), whose momentum score has cratered to the 5.11th percentile. But three other Bitcoin-linked stocks are watching their momentum metrics implode week-over-week, and the declines are telling us something important about how quickly sentiment can shift in this space.
Bitcoin Depot Takes the Hardest Hit
Bitcoin Depot Inc. (BTM) operates Bitcoin ATMs, which means its fortunes are pretty directly tied to crypto enthusiasm. The numbers aren't pretty. The stock's momentum percentile went from a respectable 75.33 down to a dismal 8.88 in just one week. That's a 66.45 percentage point drop, which in momentum terms is basically falling off a cliff.
This dramatic erosion reflects what happens when Bitcoin's price contraction meets investor anxiety. Bitcoin Depot's recent performance tells the story: down 47.90% over the past month, off 6.88% year-to-date, and showing an annual decline of 24.75%. The stock maintains weaker price trends across short, medium, and long-term timeframes, paired with a moderate value ranking.
When you're in the business of making it easy for people to buy Bitcoin, a 30%+ drop in the underlying asset tends to dampen customer enthusiasm. And that shows up in the stock price.
Bakkt's Rally Reversal
Bakkt Holdings Inc. (BKKT) runs a platform for cryptocurrency trading and asset custody, positioning itself as infrastructure for the crypto economy. The company's momentum story is particularly striking because it's falling from greater heights. Bakkt's momentum score tumbled from an elevated 91.42 down to 22.56, marking a 68.86-point decline.
That's the largest point drop among the three stocks, and it signals a sharp pullback in investor enthusiasm after what was clearly a strong rally. When external headwinds from Bitcoin's volatility start blowing, momentum stocks feel it first and feel it hardest. BKKT's recent performance reflects this reality: the stock plunged 51.56% over the month, dropped 45.09% year-to-date, and declined 50.12% over the past year.
The data shows weaker price trends across short, medium, and long-term periods, suggesting this isn't just a brief stumble but part of a broader pattern.
Bitdeer's Mixed Signals
Bitdeer Technologies Group (BTDR), a blockchain technology firm, rounds out the trio of momentum losers. The company's momentum ranking slipped from 64.77 to 17.50, representing a 47.27-point weekly decline. While that's the smallest drop of the three, it's still substantial and shows that even diversified blockchain plays aren't immune to Bitcoin's gravitational pull.
What makes Bitdeer interesting is the mixed message in its trend data. The stock fell 55.72% over the past month, dropped 55.01% year-to-date, and declined 16.55% over the year. But unlike the other two companies, Bitdeer maintains strong price trends over medium and long-term periods, even as the short-term picture looks weak.
That divergence suggests momentum-focused traders are reassessing their positions, but longer-term investors may see something different in the company's fundamentals or positioning.
Why This Matters Now
Bitcoin was trading at $85,891.30 at the time of publication, down 0.43% and sitting 31.95% below its all-time high reached on October 7. That's a significant correction, and it's forcing a reassessment of risk across the entire crypto-linked equity space.
Momentum investing works great when prices are rising. Stocks with positive momentum attract more buyers, which creates more momentum, which attracts more buyers. It's a beautiful cycle until it isn't. When the underlying asset starts falling, that same feedback loop works in reverse, and it works fast.
These three stocks demonstrate just how quickly momentum can evaporate when the narrative shifts. Bitcoin Depot, Bakkt, and Bitdeer aren't just experiencing normal volatility. They're seeing dramatic reratings as investors who bought for momentum head for the exits.
The broader market context matters too. S&P 500, Nasdaq 100, and Dow Jones index futures were trading higher on Monday following a positive Friday close, suggesting that this weakness is specific to crypto-adjacent names rather than a general market selloff.
For investors watching these stocks, the momentum collapse is a reminder that what goes up fast can come down faster, especially in sectors as volatile as cryptocurrency. Whether this represents a buying opportunity or a signal to stay away depends entirely on your view of Bitcoin's next move and your tolerance for this kind of volatility.
