Crypto Stocks Plunge as Bitcoin Enters Deep Bear Market Territory
New York, Tuesday, 16 December 2025.
Bitcoin’s 30% drop from its October high of $126,000 has triggered a sharp sell-off in linked equities like MARA and IREN. With prices sliding below $86,000, this high correlation signals a harsh end to 2025.
Equity Markets React to Digital Asset Volatility
The trading session on Monday, December 15, marked a severe downturn for cryptocurrency-linked equities, driven by Bitcoin’s descent below the $86,000 mark for the first time in two weeks [1]. As the digital asset slid approximately 3% to a session low of $85,171, publicly traded companies with significant exposure to the sector faced immediate selling pressure [1]. Notable decliners included IREN Limited, which shed 11% of its value, and Bitmine Immersion Technologies, which fell 10% [1]. MARA Holdings also retreated, recording a 7% loss, while Strategy shares dropped 8% amidst the broader market correction [1]. This synchronized sell-off underscores the persistent correlation between equity valuations in the crypto sector and the spot price performance of the underlying assets [1].
Analyzing the Bear Market Structure
Market analysts are now classifying this downturn as a confirmed bear market, with Bitcoin trading roughly 30% below its all-time high of over $126,000 established in early October [1]. According to 10x Research, the combination of deteriorating on-chain metrics, capital flows, and market structure leaves “little doubt” that the asset class has entered a bearish phase [2]. This sentiment is echoed by data from Glassnode, where researchers note that the consolidation range between $80,000 and $90,000 is generating financial stress comparable to the downturn observed in January 2022 [2]. Technical indicators further validate this outlook, with the 200-day moving average trending downward since mid-November 2025 [3].
Widespread Liquidations and Sentiment
The volatility has triggered a cascade of forced closures across derivatives markets. On December 14 alone, crypto traders sustained $470 million in total liquidations [2]. Bitcoin and Ethereum positions accounted for a significant majority of this volume, totaling 283 million dollars combined [2]. Ethereum, the second-largest cryptocurrency by market capitalization, has not been spared, falling 4.9% on Monday to trade at $2,930 after briefly touching a low of $2,896 [1]. This aggressive repricing has severely impacted investor sentiment; the Fear & Greed Index currently sits at 16, a level indicative of “Extreme Fear” among market participants [3].
Institutional Flows and Economic Indicators
Despite the prevailing bearish price action, institutional activity presents a divergent signal. For the week ending December 7, spot Bitcoin ETFs recorded net inflows of $286.6 million, pushing cumulative inflows to $57.9 billion [2]. Similarly, Ethereum ETFs saw net inflows of $208.9 million during the same period [2]. However, these capital injections have not been sufficient to counteract the selling pressure from investors exiting positions established near the October peaks [1]. On the macroeconomic front, U.S. Treasury yields slipped on December 15, with the 10-year yield dropping to 4.157%, as traders positioned themselves ahead of upcoming economic reports on inflation and jobs [2].