The disparity between the stock market and Bitcoin has grown more pronounced following Bitcoin’s adjustment after its all-time high in October.

The U.S. Federal Reserve recently announced a third interest rate cut for 2025, boosting U.S. stock prices while Bitcoin dipped but eventually rebounded. This trend has characterized the latter half of 2025. As investment capital increasingly flows from traditional equity investors into Bitcoin, the two markets have diverged further.

In the last six months, Bitcoin has decreased nearly 18%. In contrast, three primary U.S. stock indices have surged, with the Nasdaq Composite rising by 21%, the S&P 500 by 14.35%, and the Dow Jones Industrial Average by 12.11%.

Bitcoin’s progress this year remains notable, with new all-time highs achieved and the avoidance of the typical downturn known as “red September” for the third consecutive year.

July: GENIUS Act Boosts Crypto

In July 2025, robust equity outcomes and a steady appetite for risk prevailed despite major tariff announcements. After brief turbulence, the focus returned to corporate performance and growth indicators.

AI chip leader Nvidia made headlines by becoming the first company to achieve a valuation of $4 trillion. Equities experienced no significant drop even in the face of new tariffs on copper.

Bitcoin’s performance in July was commendable, clocking an 8.13% rise as it had its strongest monthly showing of the second half of the year.

August: Powell’s Address Lifts Ether to New Heights Anticipation of further interest rate cuts from the Federal Reserve drove a market rally in August. Bitcoin hit a new record high of approximately $124,000 amid a weakening U.S. dollar and rising trade tensions.

September: Fed’s First Rate Cut of 2025 September is typically challenging for Bitcoin, but this year it posted a 5.16% gain after the Federal Reserve enacted its first rate reduction due to signs of a cooling labor market.

October: Tariff Threat Leads to Liquidation Frenzy Despite reaching another peak on October 6, Bitcoin’s month was marred by massive liquidations, leading to approximately $19 billion in losses as prices tumbled below $110,000.

November: US Government Shutdown Ends November, which usually sees Bitcoin thrive, proved challenging in 2025 as it fell 17.67% amid heightened selling pressure.

Year-End Targets Revised Downward As December progresses, Bitcoin has gained about 2%, with lowered year-end projections becoming evident, including a significant price target reduction from Standard Chartered.