Bakkt Holdings (BKKT), a crypto exchange and custody firm, saw its shares plunge on Monday after disclosing that neither Bank of America (BAC) nor crypto trading app Webull Pay would renew their commercial agreements with the company.

At the time of writing, BKKT shares have dropped 35% in after hours trading to $12.83. The stock made its all-time high in October 2021, when it was traded for $1,063 shortly after the firm became public through its merger with VPC Impact Acquisition Holdings.

Bank of America accounted for roughly 16% of Bakkt’s loyalty service revenue in 2023. Webull, meanwhile, represented 74% of Bakkt’s crypto service revenue in the same period. The agreement with Bank of America is scheduled to expire on April 22, while the contract with Webull will end on June 14.

Bakkt has requested an extension of time to file its 2024 annual report with the SEC.

Crypto markets climbed higher on Monday with bitcoin (BTC) trading above $84,000 as another positive day for U.S. stocks extended their rise lifting risk assets.The largest cryptocurrency was up, the broader crypto market was up 1.8%, while the broad-market CoinDesk 20 Index slightly outperformed with a 2.4% advance during the same period. Ethereum’s ether (ETH) stabilized above $1,900 and was 2.8% higher, while several altcoin majors including SUI, AAVE, ICP and NEAR booked more than 5%.

Solana also edged 3% higher in line with the broader market, as the first day of SOL futures trading on institutional-focused marketplace CME failed to make a difference on investor sentiment.

Ethena’s governance token (ENA) rallied 7% on the news of developing a proprietary blockchain with tokenized asset issuer Securitize, aiming to connect decentralized finance (DeFi) and traditional institutions.

Key U.S. stock indexes extending their bounce into this week gave a favorable backdrop for risk assets. However, LMAX Group strategist Joel Kruger warned that the monthly S&P500 chart suggests a sustained correction for U.S. equities, which could weigh on cryptocurrencies.

«When we consider the state of global trade tension and concerns around a slowdown in the US economy, all at a time when it’s increasingly uncertain how much more accommodation the Fed can offer, there is indeed worry stocks could fall further,» Kruger said.

He noted there’s a potential for a lower low for BTC to revisit the 2024 March peak at $73,000-$74,000.

The market near-universally expects the Fed to keep rates unchanged during this week’s Federal Open Market Committee’s meeting, but investors should keep an eye on any potential change in the central bank’s balance sheet runoff, or quantitative tightening (QT) program, said David Duong, head of research at Coinbase Institutional.

«We think the Fed might pause or end its QT program this week, as bank reserve levels are near the 10-11% of GDP levels that are commonly considered sufficient for maintaining financial stability,» he wrote in a Monday report.

He said the recent crypto selloff was largely due to macro concerns and deteriorating liquidity conditions, which could turn for the better during the next quarter, providing tailwind for asset prices. «Crypto prices could find their bottom in the next few weeks before rebounding to new highs later this year,» he concluded.

Gold has been on a strong run, surpassing $3,000 for the first time last week, and now there are calls for even more upside for the precious metal prices.

Jeffrey Gundlach, CEO of DoubleLine Capital and colloquially known as the «Bond King» for his expertise in fixed-income markets, believes the rally is far from over and could see the precious metal top $4,000.

Speaking during a macroeconomic outlook presentation titled “Not in My Neighborhood,” Gundlach highlighted gold’s sustained price momentum alongside other commodities. Cryptocurrencies backed by the precious metal, including PAXG and XAUT, have been benefiting from its historic price rise.

“I think gold will make it to $4,000. I’m not sure that’ll happen this year, but I feel like that’s the measured move anticipated by the long consolidation at around $1,800 on gold,” Gundlach said.

Gold-backed cryptocurrencies have been outperforming the wider cryptocurrency market so far this year. While PAXG and XAUT are up roughly 14% year-to-date, bitcoin dropped 11.4% over the same period, and the broader CoinDesk20 Index retreated by over 25% in the same period. Gold ETFs last week have surpassed bitcoin ETFs in assets under management.

His prediction is rooted in shifting central bank strategies. Global central banks have been increasing their gold reserves, reversing a period in which their holdings were dwindling. The total amount of gold held globally, according to IMF data Gundlach presented, has climbed from a low of around 34 billion Special Drawing Rights (SDR) in 2010 to 40.9 billion SDR, reaching levels last seen between 1975 and 1980.

Special Drawing Rights are an international reserve asset the IMF created back in 1969, defined through a basket of currencies.