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Investing.com -- Wolfe Research analysts warned that the recent collapse across cryptocurrencies could be an early sign of broader market weakness, noting that digital assets are now “rolling over vs. equities,” a pattern that previously preceded major drawdowns.
In a new report, Wolfe said, “How quickly things can change. Our previous Crypto Report from two weeks ago was titled ‘Bending, But Not Breaking.’ Well, it’s clear that we have now broken.”
The firm noted that “every coin outside of BTC and ETH is down well into the double digits over the past two weeks, while Crypto-related equities have pulled back as well.”
While the crypto market has shown “resilience time and time again,” Wolfe said there is “a clear message being sent here.”
The analysts highlighted that the last two times crypto underperformed equities, in March 2024 and February 2025, “preceded broader market drawdowns.” Wolfe asked pointedly, “Does recent history repeat?”
The note also examined Bitcoin’s four-year halving cycle, saying, “price tends to peak between 518–547 days after each halving.
Today would mark day 550.” While Wolfe acknowledged the “small sample size,” it said the timing of the latest selloff “comes right on cue.”
According to Wolfe, the next few days will be critical. “The real tell regarding this recent crypto sell-off will come as coins enter oversold territory at support,” the analysts said.
“Failure to respond would raise major red flags, not just for Crypto Coins and Equities, but for the market more broadly.”