Overview
- The S&P 500 is up more than 16% in 2025 while Bitcoin is down roughly 3%, the first year this decade that the two have moved in opposite directions.
- Bitcoin set a record above $126,000 earlier this year but has slid about 30% to the high-$80,000s, including a drop of around 4% on Friday to near $88,000–$89,000.
- ETF inflows slowed, high-profile endorsements quieted, and momentum gauges weakened, including one of the shortest streaks of rising daily highs for a year that set new peaks.
- Analysts also cite shifting rate expectations, higher inflation, and investor focus on AI-linked equities and precious metals as factors redirecting risk capital away from crypto.
- Some market participants, including FRNT Financial’s Stephane Ouellette, argue Bitcoin still leads the S&P 500 on a multi-year view, framing 2025’s gap as equities catching up.