Bit Digital, Inc. (BTBT), a bitcoin mining company, experienced a significant pre-market plunge of 5.25% on Wednesday. The decline was driven by a broader sell-off in the cryptocurrency market, particularly Bitcoin, which dropped below the $97,000 mark.

The sell-off was fueled by a series of positive U.S. economic indicators that raised fears of potential inflation resurgence. Stronger-than-expected job openings data and an acceleration in services sector activity, coupled with rising input prices, pointed towards a robust economy. This pushed benchmark 10-year Treasury yields higher, weighing on risk assets like cryptocurrencies and their associated stocks.

The drop in Bit Digital's stock price coincided with over $555 million worth of positions being liquidated in the cryptocurrency market. As a bitcoin mining company, Bit Digital's fortunes are closely tied to the performance of Bitcoin and the broader cryptocurrency market.