Strategy, Robinhood, and Coinbase Stocks Slide. One Reason Not to Worry.

Coinbase stock jumped 6.5% on Monday. (Dreamstime)

Key Points

• Crypto stocks, including Strategy, Coinbase Global, and Robinhood Markets, fell in premarket trading.
• Bitcoin reached an intraday high of $89,212 before sliding 1.9% overnight, but remains up 6.6% from early Friday.
• The premarket declines in crypto stocks are attributed to catching up with Bitcoin’s overnight movements, not a new selloff.

Investors will wake up this morning to see crypto stocks falling—but it’s best to put that down to unfortunate timing, rather than a fresh digital-asset selloff.

Shares in major Bitcoin investor Strategy fell 3.3% in early trading. Crypto exchange Coinbase Global slipped 4%, and online trading platform Robinhood Markets were 2.6% lower.

All three of the stocks rallied more than 5% on Monday as hopes of a Federal Reserve interest-rate cut in December sent investors piling into Bitcoin and other risk-on assets.

Bitcoin hit its intraday high of $89,212 shortly before the closing bell, then slid 2.4% overnight. The world’s largest cryptocurrency is still up about 6% from early Friday, according to data from CoinDesk.

Unlike equity markets, Bitcoin trades 24/7. That means stocks like Strategy tend to make large moves when the premarket opens, as investors race to catch up with overnight crypto moves.

So while Strategy and its peers looked set to open in the red, that shouldn’t take too much shine off Monday’s rally.

Write to George Glover at george.glover@dowjones.com