The world’s main stock benchmarks have also had a turbulent year, repeatedly hitting record peaks and then pulling back as worries over tariffs, interest rates and a possible artificial intelligence (AI) bubble whipsawed markets. While equities are mostly up year-to-date, Bitcoin’s overall correlation with share prices has strengthened markedly this year.

Analysts say Bitcoin’s gyrations increasingly tracked stock market sentiment as traditional retail and institutional investors jumped into cryptocurrencies, which next year may be even more closely tethered to factors driving stocks and other risk assets, such as monetary policy shifts and nervousness over the lofty valuations of AI-related stocks.

“Crypto reacting to broader equities has been a consistent theme in 2025,” said Jasper De Maere, Desk Strategist at crypto algorithmic trading firm Wintermute. Bitcoin was hovering around $89 000 on Monday.

After soaring earlier this year with the election of crypto-friendly United States President Donald Trump, cryptocurrencies, along with stocks, plummeted in April on his tariff announcements, but quickly rebounded. Bitcoin went on to hit an all-time peak above $126 000 in early October.

–Reuters–