MARA Holdings, a prominent player in the cryptocurrency mining sector, saw its stock price plummet by 5.55% in pre-market trading on Tuesday. This sharp decline appears to be directly linked to the broader cryptocurrency market downturn, particularly Bitcoin's fall below the $83,000 mark.

The cryptocurrency market experienced a significant pullback, with Bitcoin dropping more than 3% and trading below $83,000. This decline in Bitcoin's value has had a ripple effect across crypto-related stocks, with several major players in the industry feeling the impact. Coinbase Global, another crypto-focused company, was down about 4%, while Microstrategy, known for its substantial Bitcoin holdings, saw a 6% decrease.

MARA Holdings' stock price is particularly sensitive to Bitcoin's movements due to its business model centered around Bitcoin mining. As Bitcoin's price declines, the profitability of mining operations can be affected, which in turn influences investor sentiment towards companies like MARA. This close correlation between Bitcoin's price and crypto mining stocks explains why MARA Holdings experienced such a sharp decline in line with the broader crypto market downturn.