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Bitcoin traded near $62,000 as Bitwise linked the latest pullback to tightening financial conditions, arguing that the cryptocurrency’s price action is reflecting a broader risk-off shift across global markets.
Bitwise said Bitcoin and Ether fell to $58,000 and $1,507 during the recent downturn. Over the same period, the Nasdaq posted a 5% daily decline, its sharpest drop in months, while South Korea’s KOSPI halted trading temporarily after a heavy sell-off in semiconductor stocks.
The firm attributed Bitcoin’s relative timing to its market structure, noting that it trades around the clock. “BTC often acts as a canary in the macro coal mine,” Bitwise said, adding that crypto prices can adjust quickly to liquidity changes while equities typically respond later.
Bitwise also pointed to stronger US labor data, which reduced expectations for Federal Reserve rate cuts. It said the US 10-year Treasury yield held near 4.53% after reaching 4.68% last month, with higher-for-longer rate expectations pressuring growth-sensitive assets across markets.
Bitwise referenced a chart comparing Bitcoin, the Nasdaq, and Global M2, showing diverging trends. It said Global M2 rose to about $122.6 trillion over the past year, while Bitcoin retreated sharply from its $126,000 cycle high.
The firm said the pattern suggests Bitcoin may have repriced earlier than equities. It added that if liquidity conditions improve later, there could be room for renewed price response, while noting that global liquidity continues to expand despite recent volatility.
Onchain indicators also pointed to available capital within crypto markets. Independent analyst Maartunn said the stablecoin supply ratio (SSR) fell to 13, an oversold level. He explained that lower SSR readings indicate larger stablecoin balances relative to Bitcoin’s market value.
The SSR compares Bitcoin’s market capitalization with major stablecoins including USDT and USDC. Bitwise noted that historically, similar readings have appeared near accumulation zones before stronger price periods.
Exchange data cited by Bitwise showed stablecoin reserves near $72 billion. It said USDT accounts for $57.7 billion of exchange balances, while USDC holds about $12 billion.
Bitwise noted that reserves have declined from peaks above $80 billion in late 2025, but remain elevated. With Bitcoin trading near the lower end of its recent range, the firm said liquidity continues to be positioned on exchanges.
Coinbase has launched a High Yield USDC vault within its in-app DeFi lending offering, adding a second lending option that provides exposure to a wider range of collateral assets. The product is powered by Morpho infrastructure and uses vault allocations curated by Steakhouse Financial.
