Is the crypto market dancing to the tune of US equities, Euro markets, Asia stocks, and global-tied markets?

The crypto and stock market are clearly two different places, but since US President Donald Trump walked back into the Oval Office, it doesn’t really seem like that anymore, does it? The S&P 500 is down over 4% year-to-date, while crypto’s global market cap bid bye to over 20% of its value in the same period. What’s the trend? They are both deeply in the red.

Crypto holders once scoffed at Wall Street’s suits with a pretty concrete argument: digital currencies equal financial freedom. They now sweat the same headlines: Trump’s tariff threats, China’s retail surge, and Europe’s spending flex. Bitcoin’s price swings and the $2.86 trillion crypto market cap are no longer solo events, they are part of the same symphony.

The stock market is lower today than it was when Donald Trump was inaugurated. I wonder why Trump voters would support him so that he could obliterate their 401k and retirement savings. I have a feeling this isn't what they voted for.
🤷🏼‍♂️🤦🏻‍♂️ #stockmarketcrash #ettd pic.twitter.com/f9TWbFTEdp

— Lou Skunt (@pacjun10) March 12, 2025

Is crypto as an asset class following the down-up-down price trend of the equities markets? It seems so, at least for Q1 2025.

Markets start the week on a small rebound

On March 17, global equities shook off a brutal stretch, riding Friday’s momentum, which saw the S&P 500 and MSCI World Index each jump over 3% in two days. Investors shrugged off trade war jitters to snap up cheap stocks and special metals like gold. 

Though very slim and almost non-existent, there’s a faint hope of a Ukraine-Russia truce that might have given risky assets a nudge. The crypto market cap shed 2% of its value in the last 24 hours, but exchange-traded-fund net inflows went up by $149.2 million, according to Coingecko data.

But then came the weaker-than-expected US retail sales report, added to President Trump’s confirmation of reciprocal tariffs set to kick in on April 2. 

Equities took back more than 1% of what they gave during Tuesday’s opening trade session. Bitcoin, reeling from a four-month low last week, is now changing hands just slightly above $82,000, with just about the same percentage decrease. 

Coincidence? Hardly. Crypto traders were eyeballing the same data as stock jocks, US economic wobbles, Trump’s next move, and Asia’s pulse. The markets look like they are talking to each other, and they’re saying plenty.

Crypto, stocks, and the White House

Trump’s tariff threats—50% on Canadian steel and more on deck—are slowly putting a stranglehold on consumer confidence, and the effect is quite visible in the futures markets. According to CNBC data, the Dow shed 0.83% today, while the Nasdaq’s 1.5% downtick only suggests that investors could still be licking correction wounds for the next few weeks.

Eight days ago, when the White House announced the tariffs, BTC dipped below $77,000 that day, with social media pointing the finger at Trump’s trade war redux. Crypto’s Fear and Greed Index screamed “extreme greed” as holders bailed from their positions.

"You can't really watch the stock market" -Donald Trump https://t.co/7ilKdOjZWx pic.twitter.com/stiuh2NkN0

— Chris OIIey (@chrisoIIey) March 9, 2025

Europe’s Stoxx 600 held steady on Tuesday, jumping up 0.46% since Monday’s close. The Euro is also solid above $1.09, nearing its US November election highs, all thanks to Germany’s government approval for more borrowing and ceasefire hopes from a Trump-Putin call.

Asia’s China’s Hang Seng hit a three-year high, up 23% in 2025. Japan’s Nikkei popped 1.5%, brushing off trade war noise. Wages in the APAC region are also outpacing the US, according to several economists like WisdomTree’s Jeff Weniger. Bond yields are climbing, 40-year JGBs near 3%.

Everyone arguably wants to hear about currencies getting stronger than the US dollar. This will raise stock prices and Bitcoin.

Are equities and crypto really bound together?

So, how does this mess move crypto prices? When the S&P 500 cratered 2.7% on March 10, Bitcoin trailed it down. The correlation seems loose because crypto’s dwindling far worse than equities, but it’s certainly there. 

A juiced-up Euro-zone lifts global risk appetite for gold, but when the market goes up, Bitcoin also catches the wave. 

Crypto investors are also now acting more like stock traders, dissecting US inflation data, recession possibilities, retail sales, Trump’s tariff deadlines, and China’s policy drops. 

Take today, for example, when Trump’s chatting with Putin about a Ukraine-Russia peace deal. Analysts expect that if stocks climb up in hopes of the war ending, so will Bitcoin. But if the two Presidents don’t see eye to eye, almost everyone will wait for a more negative impact. It’s almost as if crypto holders themselves are on Wall Street.

Fed announcement comes Wednesday, no change of heart in sight

Donald Trump’s play-pause-play announcements on tariffs and economic policies have made US households and businesses a little worried about spending, and the same sentiments seem to have clouded crypto investors. None of the trading volumes on the top 10 exchanges ranked by Coingecko, including Binance, Coinbase, and Bybit, is on the green.

We are all waiting to hear what Jerome Powell and the US Federal Reserve will say after its latest meeting on interest-rate policy, with an announcement expected on Wednesday.

The Fed has the option to cut its benchmark interest rate, which currently stands between 4.25-4.5%, to make borrowing cheaper for businesses and consumers, which could stimulate economic activity on both ends of the financial stick. 

Yet, lower rates also risk fueling inflation, and many Americans are already preparing themselves for rising prices due to the impact of tariffs. Wall Street widely expects the Fed to keep interest rates unchanged.

What does this mean? Get ready for more digital currency holders and stock investors letting go of what’s on their portfolio in the coming weeks, and in short, more market bloodshed.