Bitcoin Plunges Below $65K: Mining Stocks and Asian Markets Reel

Bitcoin's sudden drop below the $65,000 threshold sent immediate shockwaves through connected financial sectors. The digital asset's stumble triggered a domino effect, leaving investors scrambling to reassess risk.

The Mining Sector Takes a Direct Hit

Publicly traded cryptocurrency mining companies felt the brunt of the sell-off. Their share prices—often a leveraged bet on Bitcoin's price action—tumbled in near lockstep with the underlying asset. When Bitcoin coughs, the miners catch a cold, and this was a full-blown flu. It's a stark reminder that for all their high-tech infrastructure, their fortunes are still tied to a single, volatile metric.

Asian Markets Show Vulnerability

The reaction across major Asian financial hubs was pronounced. Exchanges and investment vehicles with high crypto exposure saw sharp pullbacks, highlighting the region's intricate and sometimes fragile link to digital asset flows. The rapid contagion from crypto to traditional equity markets underscores how deeply these assets are now woven into the global financial fabric—for better or worse.

The Ripple Effect and a Reality Check

This isn't just a crypto story; it's a liquidity and sentiment story. The move below $65K acted as a technical trigger, flushing out over-leveraged positions and testing the conviction of recent bulls. It serves as the market's cynical jab at 'this time is different' narratives—a classic reminder that gravity still applies, even in the digital age. The path forward hinges on whether this is a healthy correction or the start of a deeper reckoning.

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.

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