Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
June has been a memorable month for the U.S. stock market. Despite the threat of escalating conflict in the Middle East and ongoing economic uncertainty, flagship indices surged to record highs on Friday.
In the Nasdaq 100, Strategy’s share price has risen by a modest 3% over the past month, suggesting that investor enthusiasm for Michael Saylor’s Bitcoin treasury model is beginning to wane. MSTR has surged 178% over the past year but remains below its 52-week high of $542.99 recorded last year.
You might wonder why this matters to a crypto-focused publication. However, developments on Wall Street have a substantial impact on crypto markets and can determine whether bull runs continue or bear markets begin.
Image: Newhedge
Currently, the correlation stands at 0.47, indicating a relationship between stocks and cryptocurrencies. This suggests that BTC is being driven by macroeconomic factors and broader market sentiment rather than interest in the digital asset itself. As Newhedge notes:
“When Bitcoin decouples from equities, its price movements are often driven by its intrinsic fundamentals, such as its fixed supply, adoption cycles, and halving events.”
Given this context, let us examine what lies ahead for the stock market as 2025 progresses and explore how that could impact Bitcoin.
In fact, there are signs that tensions between key trading partners are beginning to thaw. The U.S. and China reached a new deal that will make it easier for American firms to acquire rare earth minerals and magnets.
Inflation remains a concern for both consumers and corporations. There are fears that Trump’s default 10% tariffs on a host of imported goods could soon feed into the data. The Federal Reserve’s target has long been 2%, but figures continue to show inflation is stubbornly higher. This has left Fed Chair Jerome Powell reluctant to cut interest rates, with most policymakers in the Federal Open Markets Committee indicating they will hold rates again at the end of July.
Another hold would undoubtedly irritate Trump, who has repeatedly called for Powell to resign. The U.S. president wants interest rates to be much lower than their current level and recently suggested on Truth Social that they should be 1%.
Bloomberg reports that when this index hits a new all-time high after emerging from a bear market or correction, further gains tend to follow. Tracking seven previous instances, average returns after three months stood at 0.4%, rising to 6.6% after six months, and 13.1% after a year.
Turns out, when it goes between 4-12 months without a new ATH and then hits one, the forward returns are quite muted.
Not once up double digits a year later. Hmm. pic.twitter.com/GLKg4AZmPU— Ryan Detrick, CMT (@RyanDetrick) June 26, 2025
