Bitcoin decouples From Stocks in Second Half of 2025📉📈

The gap between equities and Bitcoin got wider after Bitcoin’s post-all-time-peak correction in October.
The US Federal Reserve announced its third interest rate cut of the year on Wednesday, lifting US equities while Bitcoin
BTC
$90,373
slipped before bouncing back.

That dynamic has defined the second half of 2025. Even as capital flows into Bitcoin are increasingly tied to traditional equity investors, the cryptocurrency has continued to diverge from the stock market.

Over the past six months, Bitcoin has fallen almost 18%. Meanwhile, the three major US stock indexes posted strong and consistent gains, with the Nasdaq Composite up 21%, the S&P 500 rising 14.35% and the Dow Jones Industrial Average climbing 12.11%.

Bitcoin has still recorded notable milestones this year, including setting new all-time highs and avoiding the typical “red September” for the third year in a row.

Here’s how Bitcoin’s divergence from stocks has widened through the second half of the year.
July: GENIUS Act lifts crypto
July 2025 was defined by strong equity performance and a resilient risk appetite that persisted despite significant tariff announcements.

Early-July trade rhetoric caused brief turbulence, but markets quickly shifted their focus back to corporate earnings and underlying growth fundamentals.

Related: DATs bring crypto’s insider trading problem to TradFi: Shane Molidor

On July 9, AI chip giant Nvidia became the first company to reach a $4-trillion valuation. On the same day, equities shrugged off trade-related shocks as the S&P 500 and Nasdaq posted fresh record highs even after the US announced 50% tariffs on copper.

Bitcoin ended July up 8.13%, marking its strongest monthly performance in the second half of the year to date, including December. Crypto markets strengthened after US President Donald Trump signed the GENIUS Act into law, injecting fresh optimism into the sector, particularly for stablecoin-related.