BIT Mining Plummets 36%—What’s Driving the Freefall?

• BIT Mining (BTCM) collapses 36.66% intraday to $3.96, hitting a 52-week low of $1.22.
• $300M Solana expansion triggered a 160% pre-market surge earlier this year, now erased by volatility.
• Regulatory concerns and market instability cited as catalysts for today’s selloff.

BTCM’s brutal decline marks a stark reversal from its blockchain-driven rally, with traders now pricing in macro risks. The stock trades near 30-day support ($1.93–$2.02), with technicals signaling extreme overbought conditions reversing violently.

Regulatory Uncertainties and Crypto Volatility Trigger Sell-Off
BIT Mining’s 36.66% intraday collapse stems from two primary catalysts: explicit regulatory concerns outlined in recent news and broader crypto market instability. The company’s July 10 announcement of a $300M Solana expansion, which initially fueled a 160% pre-market surge earlier this year, has been overshadowed by execution risks and regulatory headwinds. Technical indicators compound the pain: RSI at 98.44—a two-year extreme—signals extreme short-term overbought conditions being violently corrected, while price action below the Bollinger middle band ($2.33) amplifies bearish momentum.

Bearish Options and Technicals: Capturing BTCM’s Volatility
BTCM20250718P4 and BTCM20250718C4 stand out:
• Technical Indicators:
 - RSI: 98.44 (extreme overbought, signals mean reversion)
 - Bollinger Bands: Price below middle band ($2.33), near 30-day support ($1.93)
 - MACD Histogram: 0.2858 (bullish divergence vs price action)

BTCM’s $3.96 price sits 52% below its 52-week high, with resistance at $5.50 (July high). Focus on bearish plays until Solana adoption metrics materialize. Key levels: $2.33 (200-day average) for a bearish breakout, $5.50 (July high) for a short-covering rally.

BTCM20250718P4 (Put, $4 strike):
• Delta: -0.467 (46.7% downside exposure)
• Theta: -0.0115 (moderate time decay)
• Gamma: 0.416 (high sensitivity to price swings)
• Turnover: $53,602 (high liquidity)
• Payoff at $3.76 (5% decline): $0.24 intrinsic value + volatility premium. A must-watch for short-side volatility capture.

BTCM20250718C4 (Call, $4 strike):
• Delta: 0.545 (54.5% upside exposure)
• Theta: -0.0377 (faster time decay advantage)
• Gamma: 0.346 (responsive to rebounds)
• Turnover: $57,968 (high liquidity)
• Payoff at $4.16 (5% rebound): $0.16 intrinsic value. Leverage ratio at 9% offers capital efficiency for bullish bets.

Hook: If BTCM breaches $2.33 support, BTCM20250718P4 becomes a must-hold for shorts until Solana’s ecosystem adoption proves sustainable.

Backtest BIT Mining Stock Performance
The Backtest of BTCM's performance after a -37% intraday plunge shows mixed results. While the 3-Day win rate is high at 46.55%, the 10-Day win rate is slightly lower at 44.14%, and the 30-Day win rate is the lowest at 37.40%. This indicates that BTCM tends to recover relatively quickly from such large intraday declines, but the overall short-term performance is still somewhat volatile.

Hold Cash or Bet on Solana? BTCM’s Crossroads
BIT Mining’s collapse underscores the fragile balance between strategic pivots and macro risks. While its $300M Solana expansion retains long-term potential, immediate regulatory uncertainties and technical breakdowns dominate sentiment. With sector leader ACN down 2.44%, broader tech volatility amplifies BTCM’s risks. Action Insight: Focus on puts near $4 strikes until Solana’s ecosystem adoption metrics materialize—this is a stock to trade, not hold, in current conditions. Watch for a breach of $2.33 (200-day average) or a rebound above $5.50 resistance to gauge the next move.