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#CryptoStocksSlipBMNRDownOver4%


The sharp sell-off on September 25 resembles a deleveraging process driven by risk aversion rather than a trend reversal; however, the continuation of this movement is required to confirm this.

General weakness in crypto-linked stocks: MARA shares fell by approximately 4.8% on September 25; this decline was driven not only by weakness in Bitcoin but also by pressure resulting from a recent analyst downgrade.

The sector is exceptionally sensitive to BTC: Strategy, BMNR, Circle, and mining companies essentially represent different ways of gaining exposure to the crypto market; consequently, a pullback in BTC can lead to more significant movements in their share prices.

A different factor underlies BMNR: Bitmine's reserves consist largely of ETH rather than BTC (approximately 5.98 million ETH as of September 20); therefore, weakness in BMNR should not be interpreted solely as a signal regarding Bitcoin.

There is also a structural issue for companies holding BTC reserves: Strategy's capital structure and its financing via preferred stock are under pressure; this situation could exacerbate the decline in MSTR, independent of spot BTC price movements.

An important correction: BTC is currently trading at around the $84,000 level, not $73,000. Thus, the $73,000 figure appears to reflect a past snapshot of the market rather than the current price.

What would distinguish a sudden liquidation event from a trend reversal?
A scenario more consistent with a sudden liquidation event: BTC stabilizing or reclaiming its lost support level, crypto-linked stocks ceasing to make lower lows, and selling volume subsiding.

A scenario more consistent with a trend breakdown: BTC continuing to form lower highs and lower lows, ETF/crypto liquidity weakening, and high-beta stocks like MSTR, MARA, and BMNR continuing to underperform even if BTC stabilizes.

Ultimately, a single negative trading session does not provide sufficient evidence of a fundamental shift in market conditions (a regime change). What truly matters is how the next few sessions unfold and whether BTC and crypto-linked stocks confirm each other's direction.
‍$BTC $BMNR $MARA $STRC
This page contains third-party content and does not constitute any advice, nor does it represent Gate's endorsement of such views. For details, please see disclaimer.
BTCBTC-0.23%
BMNRBMNR-1.85%
MARAMARA-3.11%
STRCSTRC+0.19%


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xxx40xxx
2 minutes ago
What’s your take on BTC? 👀
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xxx40xxx
2 minutes ago
Picked up a new angle 💡
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Crypto_Buzz_with_Alex
24 minutes ago
What’s your take on BTC? 👀
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Crypto_Buzz_with_Alex
24 minutes ago
Picked up a new angle 💡
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FenerliBaba
an hour ago
Thanks for the information, bro. Appreciate your effort. 🙏💙💛
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HighAmbition
2 hours ago
Here early 🙌
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HighAmbition
2 hours ago
What’s your take on BTC? 👀
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MamonTrader
2 hours ago
Picked up a new angle 💡
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MamonTrader
2 hours ago
What’s your take on BTC? 👀
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ybaser
2 hours ago
AuthorFirst Review
Picked up a new angle 💡
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