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<p>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.</p>
<p>The market’s extended rally was one of the reasons why analysts have been holding on to this perception.</p>
<p>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.</p>
<p>This outcome was somewhat similar to crypto dominance concentration among top coins.</p>
<p>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.</p>
<p>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.</p>
<p>This also underscored the aggressive investment in the tech sector in the U.S, as well as how it has been paying off.</p>
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  <img loading="lazy" width="975" height="697" src="https://www.thecoinrepublic.com/wp-content/uploads/2025/10/image-541.png" alt="">
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   Source: Datastream
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<h2 class="wp-block-heading" id="h-crypto-versus-u-s-stock-market-correlation"><strong>Crypto Versus U.S Stock Market Correlation</strong></h2>
<p>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.</p>
<p>Trump’s administration has been pushing towards dominating the crypto market just as it is now dominating the stock market through tech stocks.</p>
<p>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.</p>
<p>ETF movements are the biggest factor underpinning the crypto market’s correlation with the stock market.</p>
<p>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.</p>
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  <img loading="lazy" width="975" height="539" src="https://www.thecoinrepublic.com/wp-content/uploads/2025/10/image-542.png" alt="">
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   The stock market and crypto market correlation/ source: TradingView
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<p>However, these observations also raise questions, especially regarding the kind of scenario which that correlation ends. Or perhaps whether one market crashing will influence the other. Will crypto also crash if the stock market bubble pops?</p>
<h2 class="wp-block-heading" id="h-rate-cuts-to-breathe-new-life-into-the-stock-and-crypto-markets"><strong>Rate Cuts to Breathe New Life into the Stock and Crypto Markets</strong></h2>
<p>Since both the stock market and crypto market are on the risk-on side of things, they will likely continue moving in tandem. Interestingly, they may be headed for a major catalyst in the next few days.</p>
<p>Recent data showed a rising probability of a rate cut before the end of October. It is now less than 2 weeks to go before the end of the month and the probabilities of a rate cut in the next 7 days are up to 100%.</p>
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  <img loading="lazy" width="919" height="794" src="https://www.thecoinrepublic.com/wp-content/uploads/2025/10/image-544.png" alt="" style="aspect-ratio:1;width: 100%;height:auto">
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   Rate cut probability/ source: X
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<p>A recent post hinted at the absolute certainty of a rate cut. Analysts have been anticipating at least 2 or 3 rate cuts before the end of the year, and the FED’s timeline has been narrowing with less than three months left. This suggests that the FED might be forced to announce aggressive cuts.</p>
<p>Quantitative easing might turn out to be the next major catalyst for risk-on assets such as crypto and stocks.</p>
<p>This suggests that the stock market and crypto might extend their bullish performance for a while longer despite market bubble concerns.</p>
<p>In the meantime, the recent retracement across both markets may act as the ideal backdrop for the bulls to make a robust comeback.</p>
<p>The post <a href="https://www.thecoinrepublic.com/2025/10/18/crypto-news-tech-stock-dominance-soars-to-historic-highs/" rel="noopener noreferrer nofollow">Crypto News: Tech Stock Dominance Soars To Historic Highs</a> appeared first on <a href="https://www.thecoinrepublic.com" rel="noopener noreferrer nofollow">The Coin Republic</a>.</p>

Crypto News: Tech Stock Dominance Soars To Historic Highs

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