Bitcoin's early crash to $60,000 now looks like a warning for stocks

Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Bitcoin's early crash to $60,000 now looks like a warning for stocks Bitcoin has once again acted as a leading indicator for risk assets, plunging sharply before the ongoing global stock market swoon. By Omkar Godbole Mar 13, 2026, 7:24 a.m. Make us preferred on Google BTC crashed first early this year. Now stocks follow. (Bernd 📷 Dittrich/Unsplash) What to know : Bitcoin has once again acted as a leading indicator for risk assets, plunging sharply before the ongoing global stock market swoon. Major equity benchmarks including the S&P 500, SPDR Financial Select Sector ETF and India's Nifty index mirror bitcoin's pre-cash price structure. Historical patterns, including episodes in 2017, before the COVID crash and in late 2021, suggest that bitcoin often peaks before the S&P 500. Many see bitcoin BTC $ 71,329.00 as a safe-haven and store-of-value asset, like gold. But some currency traders treat it as a lead indicator for broader market mood, and they've been proven right again: Before finding stability near $70,000 recently, bitcoin plunged sharply, presaging the ongoing global stock market swoon. Bitcoin's price peaked above $126,000 in early October and started falling, eventually hitting lows near $60,000 early last month. The sell-off featured rapid outflows from U.S.-listed spot ETFs. CoinDesk flagged this in January, questioning whether these flows – absent any clear crypto trigger – signaled an incoming macro economic blowup and stock market sell-off. Fast forward to today: Global market sentiment has worsened, with the Iran war and oil price spike weighing heavily on Asian and European indices. The S&P 500 and Nasdaq have also come under pressure while the dollar index gains. Meanwhile, bitcoin has been rock steady around $70,000. Here's where it gets even more interesting: Key stock indices like the S&P 500 mirrored Bitcoin's pre-crash back-and-forth trading in a broad range. Daily charts for BTC, SPX futures, XLF and Nifty. (TradingView) Bitcoin held above $100,000 for months in this volatile, expanding channel before plunging into bear territory. An identical setup has unfolded in the SPDR Financial Select Sector ETF (XLF), India's Nifty (among the hardest hit), and S&P 500 futures. Repeat of 2021-22 This isn't the first time bitcoin has led price action in traditional risk assets. Over the years, the cryptocurrency has often foreshadowed equity trends, most clearly in late 2021-2022. BTC versus S&P 500 e-mini futures. (TradingView) BTC peaked near $60,000 in November 2021 and quickly tanked to under $50,000 in a month. The bear market deepened in 2022. The Nasdaq and S&P 500 topped out two months later in January 2022, then followed suit with their own prolonged declines as the Federal Reserve raised borrowing costs rapidly. Todd Stankiewicz, president and chief investment officer of SYKON Capital, in a blog post on the Chartered Market Technicial (CMT) Association website, noted bitcoin's tendency to peak before the S&P 500 in three key instances: late 2017, weeks before the COVID crash, and late 2021. "Bitcoin either rolled over or failed to make new highs while the S&P 500 pushed ahead. In each case, the equity rally eventually stalled and reversed," Stankiewicz said. All things considered, the takeaway is clear: Stock traders should start watching bitcoin trends closely from here. Bitcoin News Stocks More For You BlackRock’s new ether ETF for yield hungry investors debuts with $15 million in trading volume By Shaurya Malwa | Edited by Omkar Godbole 1 hour ago The new ETHB fund launched with over $100 million in assets and traded more than $15 million on day one, offering investors exposure to ethereum plus staking rewards. What to know : BlackRock’s new iShares Staked Ethereum Trust (ETHB) debuted with more than $15 million in first-day trading volume on roughly $100 million in initial assets, signaling strong demand. Unlike traditional spot crypto ETFs, ETHB stakes 70% to 95% of its ether holdings and distributes about 82% of staking rewards to investors through monthly payouts. The fund charges a 0.25% sponsor fee, temporarily discounted to 0.12% on the first $2.5 billion in assets, and could help pave the way for more yield-generating ETFs tied to proof-of-stake networks. Read full story Latest Crypto News BlackRock’s new ether ETF for yield hungry investors debuts with $15 million in trading volume 1 hour ago Pi rallies more than 30% after Kraken announces listing 2 hours ago XRP jumps 3% as breakout above $1.39 ends early-2026 downtrend 2 hours ago Bitcoin above $71,000, ETH, SOL, ADA zoom higher as cryptos shrugs off stock weakness 2 hours ago Bitcoin climbs to near $72,000 after Treasury Secretary Bessent attempts to calm oil fears 6 hours ago Stricter MiCA rules could thin crypto industry across the EU, says Swiss wealth manager 8 hours ago Top Stories Donald Trump to hold another Mar-a-Lago lunch for his token holders 10 hours ago SEC's advisory group backs tokenized securities push, outlines how to keep it safe 9 hours ago U.S. Senate votes to ban CBDCs in housing bill that may face trouble in the House 15 hours ago Vitalik Buterin says Ethereum should be used as a simple digital bulletin board 15 hours ago Cathie Wood's Ark Invest says quantum computing is a long-term risk for bitcoin, not an imminent threat 15 hours ago Tether invests in Ark Labs to make Bitcoin ready for stablecoins and payments 18 hours ago In this article BTC BTC $ 71,329.00 ◢ 2.66 %