• Crypto mining stocks have lost $12 billion, despite Bitcoin’s stability
• Decoupling between mining stocks and Bitcoin could foreshadow volatility and deeper market stress

Crypto mining stocks have taken a sharp hit, shedding over $12 billion in market value and returning to early 2024 levels. What’s particularly notable isn’t just the scale of the drop, but the timing – Occurring despite Bitcoin’s [BTC] relative price stability. This decoupling between mining stocks and BTC is raising concerns. Especially as it often precedes periods of market turbulence.

Could this be a sign of rough waters ahead for the crypto sector?

The $12 billion retreat

Bitcoin mining stocks have lost over $12 billion in market value since February, falling from above $36 billion to under $24 billion – Erasing all gains made in early 2024. Key miners have seen sharp double-digit declines.

What’s notable is that this plunge comes even as Bitcoin’s price remains relatively stable.

Decoupling from BTC – A red flag?

Miners are breaking away from Bitcoin – and not in a good way. Despite BTC holding above its $65k support, miner equity valuations have tumbled, triggering a steep decline in correlation.

In fact, data underlined that the correlation between Bitcoin’s price and miners’ market cap dipped sharply, nearing negative territory for the first time since mid-2022.