Microstrategy, Block, Coinbase stocks slump as bitcoin sinks below $17K

Stocks like MicroStrategy ( NASDAQ: MSTR ), Block ( NYSE: SQ ), and Coinbase ( NASDAQ: COIN ) are getting bashed in Wednesday afternoon trading as bitcoin ( BTC-USD ) broke below $17K following reports that crypto exchange FTX has come under regulators' scrutiny and that Binance may back out of its deal to acquire the non-U.S. portion of FTX. Bitcoin ( BTC-USD ), the world's largest cryptocurrency, has dropped 7.4% in Wednesday trading to $16.9K at 2:29 PM ET. MicroStrategy ( MSTR ), which hold bitcoin on its balance sheet, sank 16%; Block ( SQ ), which makes some of its revenue from bitcoin trading, dropped 7.7% ; Silvergate Capital ( NYSE: SI ) fell 9.4% ; cryptocurrency exchange Coinbase ( COIN ) slid 8.9% ; and digital asset platform Bakkt ( NYSE: BKKT ) slumped 9.2% . The crypt o downslide kicked off on Monday when Binance's CEO said it would sell the rest of its holdings in FTX token ( FTT-USD ) after questions were raised about the overlap between FTX and Sam Bankman-Fried's trading firm, Alameda Research. Earlier, Galaxy Digital ( OTCPK:BRPHF ) stock knocked lower on $77M FTX exposure, Q3 loss