Why both the stock market and crypto is poised for another aggressive run.
The U.S stock market has been pushing new highs in 2025, with analysts claiming that it’s in a bubble. Moreover, a correlation with crypto can be noticed if you follow news in this sector.
The market’s extended rally was one of the reasons why analysts have been holding on to this perception.
U.S tech stocks have been at the forefront of the U.S stock market rally this year. Specifically, those heavily involved in the budding AI market.
This outcome was somewhat similar to crypto dominance concentration among top coins.
Recent data revealed that the uptrend in U.S tech stocks’ dominance just pushed to new highs. They recently pushed as high as 38% which was double the levels observed in 2020.
The Goldman Sachs analysis above revealed that U.S tech stocks represent a bigger share of the U.S stock market compared to stocks outside the U.S.
This also underscored the aggressive investment in the tech sector in the U.S, as well as how it has been paying off.
Tech stocks led by Nvidia have been taking advantage of the AI narrative. The segment’s dominance was a nod to the strategy that the U.S deployed to become the most dominant country in crypto.
Trump’s administration has been pushing towards dominating the crypto market just as it is now dominating the stock market through tech stocks.
The correlation between the U.S stock market and crypto was evident in their performance. Both have been on an upward trend since April and similarly retreated courtesy of the latest market cooldown.
ETF movements are the biggest factor underpinning the crypto market’s correlation with the stock market.
Investors have been treating both as risk-on assets, hence the declining prices even as gold and other precious metals pushed to new highs recently.
While in recent crypto news, market data revealed that ETFs experienced net outflows during the last 5 days, they also revealed key details regarding crypto ETF dynamics.
Ethereum ETF outflows were more subdued compared to Bitcoin ETFs. The latter also demonstrated weaker inflows on the positive days compared to Ethereum.
The observation was noteworthy because it highlighted shifting investor preferences. This was not the first time that demand for Ethereum ETFs was higher compared to Bitcoin ETFs.
If Ethereum ETFs maintain the same trend, then institutional demand may contribute to more exciting times ahead for ETH price.
This might be reflected in ETH dominance, which has been attempting to recover during the week.
The crypto market has been struggling to recover after Trump’s tariff threat pushed the market into a cautious outlook, especially after the market experienced a heavy liquidation wave.
Despite the weekly net outflows, the ETFs scene has been heating up, and this was particularly evident in their recent milestone.
The cumulative ETF flows, including traditional assets, surpassed the $1 trillion milestone in 2025. Inflows this year might surpass 2024 ETF inflows, which clocked $1.1 trillion.
Analysts speculated that crypto ETF inflows in 2025 might push to $1.25 trillion by the end of the year.
2026 crypto ETF prospects might be even more impressive with more applications in the pipeline.
There’s no doubt that the crypto ETF segment has been heating up, judging by its growing share of the ETFs landscape.
Despite recent outflows, this week was also exciting for crypto ETFs because 5 new ETF applications landed on the SEC’s desk.
Among the new filings included VanEck’s staked Ethereum ETF or the 2X Leveraged HYPE ETF from 21Shares.
The new crypto ETF applications heavily leaned on altcoins, highlighting institutional investors’ growing appetite beyond Bitcoin ETFs.
The excitement around crypto ETFs was observed around the same time that the SEC was scheduled to announce its decisions on previous ETF applications.
While the markets waited eagerly for the SEC to determine the fates of the applications, the recent government shutdown caused further delays.
Unfortunately, there was no specific date for the end of the government shutdown. This means the crypto ETF approvals might be delayed indefinitely.
Nevertheless, analysts remained optimistic about the prospects of altcoin ETFs in the next few months. Altcoin season expectations were high over the last few months, but the outcome has so far been underwhelming.
Crypto ETFs might be the key to reigniting altcoin season excitement as well as channeling institutional liquidity.
In the meantime, crypto prices struggled to secure a bullish footing, and ETF outflows during the week were a reflection of that struggle.
Read more on The Coin Republic
