Bitcoin isn’t staging a meaningful rebound, and several crypto-exposed stocks are starting to slide sharply. Here are the names that could quickly turn into high-risk traps for investors.
After losing more than 30% from October’s record highs, Bitcoin is struggling to regain momentum. The sell-off was abrupt and severe, strong enough to rattle the entire cryptocurrency ecosystem. Even the Fed’s decision to cut rates for the third time, bringing them to the 3.50–3.75% range has failed to provide support. A move that would normally boost risk assets is instead leaving the flagship cryptocurrency under pressure, with knock-on effects already weighing on the most exposed companies.
The question is therefore becoming urgent. If Bitcoin cannot recover even in a more accommodative monetary environment, which stocks are at risk of turning into genuine value traps? In phases like this, it’s not just about returns. It’s about timing.
1) Strategy
For years, MicroStrategy was the textbook example of a corporate transformation driven by Bitcoin. From an enterprise software firm to a publicly listed BTC proxy, it offered a unique vehicle at a time when institutional investors lacked direct access to cryptocurrencies. The market rewarded the strategy handsomely, assigning rich valuation multiples for indirect Bitcoin exposure. That narrative, however, is now fading.
The launch of spot ETFs has been a structural game changer. Investors can now gain direct exposure to Bitcoin without routing capital through MSTR, eroding the scarcity premium that supported the stock for years. At the same time, the debt accumulated to finance the Bitcoin strategy has become increasingly burdensome, amplifying downside risk. Every leg down in Bitcoin now translates into a disproportionately large move in the share price. The chart reflects this clearly: a decline of more than 50% over the past twelve months and a decisive break below long-term technical support around $230. If Bitcoin remains weak, MicroStrategy could be forced into unpopular choices, including asset sales or further equity dilution.
2) Bitfarms
The early-2025 rally briefly reignited optimism for Bitcoin miners. Then momentum stalled, and reality set in. The pullback in BTC prices has driven the stock down more than 56% in less than two months. Bitfarms, a pure-play mining operator, remains highly concentrated and insufficiently diversified, leaving its earnings power almost entirely dependent on the cryptocurrency’s price.
With margins under pressure and energy costs still elevated, it took little to reverse the trend into a sharp sell-off. The stock is now hovering dangerously close to technical support around $2.70. In practical terms, the market is signaling that without a sustained Bitcoin recovery, Bitfarms could face a difficult year, especially as falling bond yields push investors toward defensive and cash-flow-generating assets. A clear mismatch in risk appetite.
3) Hut 8
Hut 8 more than doubled over the course of 2025, climbing from roughly $21 to $43.50. After setting new highs in October, however, the stock entered a prolonged consolidation phase, exacerbated by Bitcoin’s downturn and the expiration of the lock-up period tied to American Bitcoin, a spin-off that hit the market at an inopportune moment.
To regain upside momentum, HUT needs a robust and trending Bitcoin market, not one struggling to hold key levels. At a time when capital is flowing toward AI, healthcare, and infrastructure plays perceived as more resilient, Hut 8 risks falling out of favor among investors seeking visibility, margins, and balance-sheet strength.
4) Bakkt
Bakkt does not mine or hold Bitcoin directly. Its business model is centered on trading, custody, and digital asset infrastructure. These activities tend to benefit from surging volumes and investor enthusiasm, and suffer when volatility and participation decline. In 2025, the company has reported four consecutive quarters of falling revenues, and the latest Bitcoin sell-off has reopened structural weaknesses that were never fully resolved.
From a technical standpoint, the picture is deteriorating. The stock is down more than 50% year to date and over 75% from its October peak of $49.79. The takeaway for investors is straightforward. While a lower-rate environment in 2026 could be supportive for equities overall, without a decisive rebound in crypto trading activity, Bakkt risks remaining trapped in a cycle of compressed margins and high fixed costs.
5) Core Scientific
In 2024, it was briefly hailed as the “Nvidia of crypto mining.” Core Scientific appeared to sit at the intersection of two powerful trends: digital assets and high-performance computing. Yet the company’s core vulnerability remains its heavy reliance on cryptocurrency-linked revenues, which have been trending lower since the start of the year.
The stock remains extremely volatile, oscillating between its 50-day and 200-day moving averages, with no clear directional bias. If support around $15 holds, the shares could attempt a technical rebound, leveraging rising demand for computing capacity. A breakdown below that level, however, would likely be read as confirmation of renewed bearish momentum, particularly with Bitcoin still struggling to establish a stable trend.
|DISCLAIMER
The information and considerations contained in this article should not be used as the sole or primary basis for making investment decisions. Readers retain full freedom in their investment decisions and full responsibility for making them, as they alone know their risk appetite and time horizon. The information contained in the article is provided for informational purposes only and its disclosure does not constitute and should not be considered an offer or solicitation to the public to save.
Original article published on Money.it Italy 2025-12-12 05:24:00. Original title: Con il Bitcoin che crolla, ecco 5 azioni da vendere subito (prima che sia troppo tardi)
