Does crypto follow the stock market? This question is crucial for anyone navigating digital assets in 2025. Understanding the connection between crypto and traditional equities helps investors, traders, and newcomers make sense of market moves, especially during times of volatility. In this guide, you'll discover the latest trends, data, and expert perspectives on how—and when—crypto mirrors or diverges from the stock market.
As of November 2025, macroeconomic factors continue to play a significant role in both crypto and stock market performance. According to CoinMarketCap, Bitcoin (BTC) traded at $105,849.28 with a market cap of $2.11 trillion, while the S&P 500 and NASDAQ posted gains of 1% and 1.6% respectively following positive fiscal developments in the U.S. (Source: CoinMarketCap, November 10, 2025).
Federal Reserve officials, including Loretta Mester, have expressed caution regarding further rate cuts due to inflation concerns. This stance has led to a stronger U.S. dollar and modest rebounds in both equities and crypto. Historically, periods of monetary tightening or easing have triggered correlated moves across risk assets, including BTC and ETH, as investors adjust their portfolios in response to changing liquidity conditions.
Fiscal events, such as the U.S. House's stopgap funding bill to prevent a government shutdown, have also impacted market sentiment. Previous shutdowns in 2013 and 2018–2019 resulted in increased volatility for both stocks and cryptocurrencies, highlighting the interconnectedness of these markets during major policy shifts.
Does crypto follow the stock market at all times? The answer is nuanced. During periods of heightened risk appetite or fear, digital assets often move in tandem with equities. For example, when the S&P 500 rallies on positive economic news, major cryptocurrencies like Bitcoin and Ethereum frequently experience price surges as well.
However, the correlation is not constant. On-chain data and recent market activity show that crypto can decouple from stocks, especially during industry-specific events. As of November 2025, Bitcoin's 24-hour price increased by 2.07%, while its 90-day performance showed an 11.47% decline—demonstrating short-term alignment with equities but longer-term divergence (Source: CoinMarketCap).
Institutional activity further influences this dynamic. For instance, Strategy, led by Michael Saylor, acquired 487 BTC at $102,557 per coin despite recent market turbulence, bringing its total holdings to 641,692 BTC. This aggressive accumulation, even as the company's stock ($MSTR) dropped over 20% in a month, signals strong institutional confidence in crypto's long-term value, regardless of short-term stock market moves (Source: Company filings, November 10, 2025).
Several factors can cause crypto to diverge from the stock market:
For example, Ripple's XRP surged 11% in a single day following institutional acquisitions and ETF application news, even as the broader stock market remained steady. Such events highlight the unique catalysts that can set crypto apart from traditional assets.
It's a common misconception that crypto always follows the stock market. While correlations can spike during global risk events, crypto's decentralized nature and unique drivers often lead to independent price action. Here are some practical tips for users:
Remember, both markets carry risks and require ongoing research. Avoid assuming that one market's movement guarantees the other's direction.
Institutional adoption continues to shape the crypto landscape. As of November 2025, Strategy's BTC holdings reached 641,692, acquired for over $47.5 billion since August 2020, with a reported 26.1% yield year-to-date. Such large-scale purchases often lead to increased trading volumes and can influence both crypto and related equity prices, such as $MSTR (Source: Company filings, November 10, 2025).
Meanwhile, regulatory shifts—like the U.S. House's fiscal maneuvers and the Federal Reserve's cautious approach to rate cuts—have contributed to a stable environment for both stocks and crypto. Market observers note that stablecoin issuance, such as USDC, tends to rise during fiscal uncertainty, providing additional liquidity and stability to the crypto ecosystem.
These developments underscore the evolving relationship between crypto and traditional markets, with institutional moves and policy decisions acting as key drivers.
Looking ahead, the relationship between crypto and the stock market will remain dynamic, shaped by macroeconomic trends, institutional actions, and technological innovation. For those seeking to navigate these markets with confidence, staying informed and using trusted platforms like Bitget Exchange and Bitget Wallet is essential. Ready to explore more? Dive deeper into Bitget's resources for up-to-date insights, secure trading, and expert guidance on all things crypto.