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Bitcoin’s price, miners, and THIS volatility indicator – All the details!
Bitcoin’s correlation with BTC miners has been plummeting sharply. This development is significant as it suggests a potential trend reversal on the charts in the short-term or an impending regime shift.
As Bitcoin’s price has surged throughout the cycle, miners have failed to keep pace with this growth. Despite Bitcoin’s market cap climbing to $2.1 trillion, mining company stocks have taken a hit. Over the past year, Bitcoin’s price performance on the charts has been impressive, but other market players have been facing difficulties. Bitcoin miners are a case in point.
Bitcoin’s correlation with crypto mining companies has decreased significantly, according to Alphracta l. Ordinarily, when Bitcoin’s price and market cap rise, mining company stocks follow suit. This is because miners earn revenue from BTC, hold significant reserves, and are directly affected by it. As a result, the two tend to move together as they are correlated.
However, at present, this correlation seems to be breaking down. For instance, Marathon’s market cap has fallen from $7 billion to $5 billion since December 2024. Similarly, Riot Platforms’ market capitalization has dropped from $3.48 billion to $3.2 billion during the same period.
The breakdown in correlation can also be seen through the Miners’ Reserves data. In 2025 alone, these figures have fallen from $1.81 million to $1.807 million. This suggests that miners are selling their BTC holdings, which might be why their market value is declining despite rising prices.
This divergence could imply that the market is about to experience a significant movement. Historically, this has served as a leading volatility indicator. It has also been observed during times of regime shift. For instance, during the COVID-19 pandemic and following the FTX episode in 2022, Bitcoin’s price and miner values fell simultaneously.
However, it is essential to note that this divergence does not necessarily imply a bearish or bullish outcome but rather a regime shift. As a general rule, mining company stocks tend to decline before Bitcoin prices do so. This means that if the drop becomes substantial, we could see Bitcoin depreciating as well.
At present, Bitcoin may be decoupling due to its entry into a strong rally, while macroeconomic conditions are not favorable for mining companies.
Source: ambcrypto.com
