Bit Digital Shares Plunge 5.09% Amid Crypto Regulatory Scrutiny, Earnings Concerns

Bit Digital shares plunged 5.09% in pre-market trading on Nov. 21, 2025, marking a sharp reversal after recent gains. The decline came amid broader market volatility and renewed regulatory scrutiny in the crypto sector, which has weighed on risk appetite for speculative tech assets.

Analysts attributed the selloff to mixed signals from key industry players, including delayed infrastructure upgrades and unresolved compliance challenges. While the company’s Q3 revenue growth had previously bolstered investor confidence, recent earnings guidance fell short of expectations, raising concerns about long-term scalability. Sector-wide profit-taking also amplified the downward pressure.

Market participants are now monitoring the $5.50 support level, with a break below that threshold potentially triggering further technical selling. Institutional outflows have accelerated as macroeconomic uncertainty persists, though short-term traders remain cautious about overbought conditions in the broader market.

For a backtest hypothesis, a mean-reversion strategy could be evaluated using the 20-day moving average as a trigger. Historical data shows the stock has historically reversed trends within three trading sessions of crossing key psychological levels, suggesting a potential entry point if the price stabilizes above $5.20. Position sizing would prioritize liquidity, with stop-loss orders placed at 8% below entry to manage downside risk.