US-listed shares of crypto-linked companies slumped as bitcoin fell more than 15% on Monday

The plunge marks a stunning reversal for the sector that until recently was riding a wave of optimism sparked by the approval of exchange-traded funds (ETFs) tied to the spot prices of bitcoin and ether, the two biggest cryptocurrencies.

US-listed shares of crypto-linked companies slid on Monday as bitcoin fell more than 15%, after weak economic data last week stoked fears of a recession and triggered a frenzied selling of risky assets.

The plunge marks a stunning reversal for the sector that until recently was riding a wave of optimism sparked by the approval of exchange-traded funds (ETFs) tied to the spot prices of bitcoin and ether, the two biggest cryptocurrencies.

Republican presidential candidate Donald Trump's pro-crypto speech at a bitcoin conference last month also bolstered sentiment, but data showing higher unemployment and weak manufacturing activity squeezed risky assets.

"We are not surprised by Bitcoin's snap reaction as the only weekend traded market. We don't see any incremental negatives for crypto here," Bernstein analyst Gautam Chhugani wrote in a note.

"The bitcoin and crypto market will likely trade off macro and election cues for most of (the third quarter)."

Crypto miners CleanSpark, Bitfarms, Riot Platforms and Marathon Digital slumped between 12% and 25% in early trade.

Coinbase shares lost 18%, while bitcoin buyer MicroStrategy slipped nearly 23%.

Bitcoin tumbled to its lowest in nearly six months while ether plunged 19%, trading at levels not seen since January.

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