Bitcoin’s (BTC) slide below the $65,000 mark this week has rippled far beyond the crypto market, dragging down mining stocks and weighing on Asian equities already under pressure from a global tech sell-off.
The world’s largest cryptocurrency briefly dipped just above $60,000, its lowest level in about 15 months, before attempting a modest rebound. Even with that recovery, sentiment across digital assets and related equities remains fragile as investors reassess risk in an uncertain macro environment.
Whales Retreat As Sentiment Deteriorates
On-chain data shows a notable shift in Bitcoin ownership during the sell-off. According to Santiment, whales and sharks, controlling between 10 and 10,000 BTC, have reduced their share of Bitcoin’s circulating supply to around 68.04%, a nine-month low.
The large Bitcoin holders have sold roughly 81,000 BTC over the past eight days, coinciding with Bitcoin’s drop from near $90,000 to the mid-$60,000 range.
Similarly, smaller investors have continued to accumulate. Wallets holding less than 0.1 BTC reached a 20-month high in their share of supply, suggesting retail buyers are stepping in as prices fall.
Historically, similar patterns, large holders selling into retail demand, have been associated with prolonged bear phases. Reflecting this shift, the Crypto Fear & Greed Index fell to 9 out of 100, its lowest level since mid-2022.
Mining Stocks Slide Amid Bitcoin Weakness
The pressure on Bitcoin has translated quickly into losses for crypto-linked equities. Shares of major mining firms and Bitcoin proxies such as Marathon Digital, Riot Platforms, Hut 8, and Strategy Inc. posted double-digit declines, with several hitting new 52-week lows.
Strategy, one of the largest corporate Bitcoin holders, reported a sharply wider quarterly loss as falling prices weighed on the value of its holdings, adding to concerns about balance sheet risk if weakness persists.
Analysts note that the sell-off in miners has been largely macro-driven rather than tied to company-specific developments, reflecting their role as high-beta bets on Bitcoin’s price.
Asian Markets Feel The Spillover
Bitcoin’s drop also weighed on Asian markets, which were already tracking Wall Street’s losses, led by technology stocks. Equity benchmarks in South Korea, Hong Kong, and Australia declined, while Japan’s Nikkei managed modest gains after earlier losses.
Market players cited a broader risk-off mood linked to concerns over U.S. monetary policy, particularly following President Donald Trump’s nomination of Kevin Warsh as Federal Reserve chair, a move seen as less supportive of easy liquidity.
With Bitcoin now down roughly half from its October peak, investors remain cautious. While short-term rebounds are possible, continued selling by large holders and tightening financial conditions suggest volatility across crypto assets, mining stocks, and global markets is likely to persist.
Cover image from ChatGPT, BTCUSD chart on Tradingview
