Cryptocurrency Concept Stocks' Volatility Under 404 Regulatory Pressure (February Weekly Report)

The cryptocurrency market experienced a profound risk test over the past week. From the highs in early February to the lows in mid-month, and then gradually stabilizing, this dramatic price fluctuation reflected the market’s concerns over macro liquidity, regulatory policies, and the 404 stablecoin bill. During this volatile period, crypto concept stocks became a magnifying glass for market sentiment swings.

BTC Plummets, Triggering Chain Reactions, Liquidity Crisis Emerges

Bitcoin experienced a sharp decline from February 3 to February 6. It rapidly dropped from around $78,000 to the $60,000 level, triggering widespread panic in the market. This was accompanied by a rapid tightening of macro liquidity, causing related concept stocks to collectively face liquidity crises on February 5.

Fortunately, the market began to rebound on February 6. According to the latest data, BTC has recovered to $68,510 (as of March 3), showing a gradual recovery from the lows. This rebound attracted short covering and bottom-fishing funds, laying the foundation for stabilization.

MSTR and Mining Companies Under Pressure, Coinbase Earnings Ahead — Stock Risk Scan

On the individual stock level, MicroStrategy (MSTR) performed remarkably. The star stock broke below its annual cost line amid panic, hitting a low of $106.99, then recovered to $134.93 during the rebound. This intense volatility fully reflected the market’s sensitivity to institutional holdings.

Mining companies like Marathon Digital (MARA), Riot Platforms (RIOT), and Hut 8 (HUT) faced tough times. Due to profitability dropping to the lowest in 14 months, their stocks suffered declines of 20%-30%. Although some stocks rebounded later, overall performance remained weaker than the broader market.

More notably, Coinbase (COIN) is set to release earnings on February 12. Market concerns center on the ongoing increase in compliance costs potentially squeezing profit margins, which has become a key risk in recent times.

404 Regulation and Stablecoin Disputes: Long-term Pressure on Crypto Concept Stocks

Beyond short-term volatility, deeper pressure stems from regulatory developments. The ongoing debate over the “404 bill,” which questions whether stablecoins are allowed to pay yields, continues to ferment. This regulatory trend directly impacts the development prospects of the stablecoin ecosystem and exerts long-term pressure on the entire crypto concept stock sector.

Advancement of the 404 clause suggests that the business model of stablecoins may need redefinition. This uncertainty has led institutional investors to adopt a more cautious stance. Some related stocks, like COINC, face additional policy risks as a result.

From Panic to Defense, Sentiment Shift in Crypto Concept Stocks

The most notable change during this period is the shift in market sentiment. The fear index (greed index) dropped to single digits during the crisis, reflecting extreme pessimism among market participants. Although the subsequent rebound provided a short-term breather, overall investor sentiment has shifted from speculation to defense.

Focus has shifted from simple price speculation to fundamental analysis—regulatory progress, corporate earnings, and compliance costs have become new core topics. This transition indicates the market is moving from emotion-driven to rational pricing.

Crypto concept stocks, which peaked in 2025, have fallen sharply amid regulatory uncertainties like the 404 bill. The market still needs more time to reassess the balance of risks and opportunities. In the short term, investors should closely monitor Coinbase’s earnings, legislative developments on the 404 bill, and whether BTC can stabilize at current levels.