Why Is Bitcoin Going Down? $12B Mining Stock Crash Despite BTC Holdings above $65k

The crypto space is buzzing again, but not for the usual reasons. Bitcoin mining stocks have taken a surprising hit, dropping over $12 billion since February. What’s more concerning is that this is happening even though Bitcoin’s price is stable above $65,000. This unusual decoupling between miners and BTC could be a red flag, and many are starting to ask: Why is Bitcoin going down, or at least feeling pressure, even when the charts look calm?

$12 Billion Wipeout: A Big Blow for Mining Stocks

Since February, the total market value of Bitcoin mining companies has dropped from over $36 billion to under $24 billion. That’s a massive $12 billion loss. Big-name miners are seeing sharp double-digit percentage declines, effectively wiping out all the gains in early 2024.

What’s odd is that this drop is not tied to any crash in Bitcoin’s price. BTC has held steady. But the market clearly feels something is off in the mining sector.

Miners and Bitcoin: The Break-Up That Signals Trouble

Generally, when Bitcoin moves, mining stocks follow. But not this time.

There’s now a noticeable decoupling between miners and Bitcoin, with the correlation between the two nearing negative territory. This kind of split hasn’t been seen since mid-2022—and back then, it was a precursor to heavy market turbulence.

This growing gap is worrying. Whether it’s due to changes in market structure, fears around the upcoming halving, or general nervousness, something feels different this time.

Post-Halving Pressure and Political Headwinds

Several factors are putting stress on miners. For one, the recent Bitcoin halving means miners now earn less BTC per block. Add to that rising energy prices and concerns around potential U.S. trade tariffs, and it’s easy to see why the mining sector is struggling.

President Trump’s comments in April about tariffs added more uncertainty to the mix. All of this is happening while Bitcoin ETFs are becoming more popular among investors, offering exposure to BTC without the risk and hassle of mining companies.

ETFs Steal the Spotlight From Miners

It’s not just economics hurting miners, investor sentiment is shifting too. More people are choosing to put their money into Spot Bitcoin ETFs, which are seen as safer and easier. Galaxy Digital’s CEO Mike Novogratz pointed out that ETF inflows are becoming a major bullish force for Bitcoin in 2025.

As investors move their capital to ETFs, miners are being left behind, even if BTC itself remains strong. This might explain why Bitcoin is going down in sentiment terms, even if price charts don’t show it yet.

A Warning Sign for the Crypto Market?

So, what does all this mean for the bigger crypto picture? Historically, when miners fall out of sync with Bitcoin, it signals something deeper. Back in 2022, a similar divergence happened right before the market corrected.

Some analysts think this could be a canary in the coal mine, showing early signs of broader stress. Whether it’s operational issues, regulatory shifts, or just investor nerves, this mining stock slide could be more than just a blip.

In a world where tech stocks are also reacting to global tariffs, crypto may not be immune. The current divergence between Bitcoin and its miners could be the market whispering a warning, one we shouldn’t ignore.

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