The Defiance Daily Target 2X Long MSTR ETF (MSTX) saw a pre-market plunge of 15.15% on Tuesday, mirroring the broad sell-off in the cryptocurrency markets. The ETF, which is designed to provide leveraged exposure to the performance of MicroStrategy (MSTR), was impacted by the significant decline in Bitcoin and other digital assets.

Bitcoin, the world's largest cryptocurrency, fell over 8% to around $87,792 during the pre-market session, marking a three-month low. This drop was driven by a combination of factors, including weakness in technology stocks, a stronger Japanese yen fueling risk aversion, and a major security breach that saw hackers steal $1.5 billion in digital assets from the Dubai-based platform Bybit.

MicroStrategy, a prominent holder of Bitcoin, saw its shares tumble more than 6% in the pre-market trading. As a leveraged ETF that aims to provide twice the daily returns of MicroStrategy, the Defiance Daily Target 2X Long MSTR ETF was hit even harder by the crypto downturn. Other crypto-related stocks, such as Coinbase and Riot Platforms, also suffered significant losses.