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Is crypto just like a boomer stock market now?

Crypto's Reaction to Geopolitics | Is It Just Another Asset Class?

By

David Chen

Jun 23, 2025, 08:37 AM

Edited By

Daniel Wu

3 minutes reading time

A graphic showing Bitcoin price trends alongside traditional stock market trends with a backdrop of world map and financial symbols
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A wave of discontent among crypto enthusiasts grows as Bitcoin mirrors traditional stocks amidst geopolitical turmoil. As events in the Middle East unfold, many are left questioning if cryptocurrencies have truly become just another Wall Street tool, instead of the decentralized escape they once promised.

Frustration in the Crypto Community

The crypto community is buzzing with frustration. Many believed cryptocurrencies were insulated from political events and market influences. "Crypto was supposed to be the rebellion, the hedge," one member expressed, highlighting the overall sentiment of disillusionment.

Reflecting Traditional Markets

Users are noticing Bitcoin's unsettling drops in response to global tensions, likening its behavior to that of the S&P 500. "Why would any globally traded asset be immune to geopolitics?" pointed out another participant, establishing a critical perspective.

Responses suggest crypto's correlation with tech stocks and a broader acceptance by institutional investors are in play. One observer noted, "Much of the money in these markets is American. We price everything in USD," pointing to the intertwined nature of global finances. This has led some to wonder if crypto has transformed into a mere speculative asset.

"Crypto was never originally designed as a hedge," another member chirped, summarizing the discomfort many feel.

Key Themes Emerging

  • Perception of Value: Users emphasize that as adoption grows, Wall Street's influence also increases, affecting market dynamics.

  • Psychological Factors: The emotional aspect of trading persists, as fear and greed shape actions within the marketplace.

  • Market Behavior: The consensus seems to be that crypto behaves like a speculative asset due to the large presence of inexperienced investors.

Voices from the Community

  • "The protocols feel no emotion & are immune to geopolitics. Humans are not."

  • "It's simply driven by the fact that much of the money in these markets is American."

  • "Most people treat it as a speculative asset, so it acts like a speculative asset."

Key Insights

  • โ–ฒ Users increasingly feel disillusioned with the correlation between crypto and traditional stocks.

  • โ–ผ The larger influence of institutional investors contributes to volatility in crypto.

  • โ˜… "With a new wave of older, more experienced bullies who have recently shown up, crypto has become a playground."

The sentiment around crypto's response to geopolitical strains showcases a significant shift in perception and underscores the evolving complexities in this digital space. As the market shifts, the original aspirations for crypto diverge from current realities, leaving many questioning the future of their investments.

What Lies Ahead for Crypto?

As the crypto market grapples with geopolitical influences, thereโ€™s a strong chance we may see tighter correlations with traditional assets. Experts estimate that the current trajectory might lead to Bitcoin and other cryptocurrencies intertwining even more with stock market movements, with nearly a 70% probability of this trend solidifying in the next few months. Institutional investors, making up a growing portion of market activity, could exacerbate fluctuations. This shift hints at a future where crypto is less of a rebellion and more of a conventional financial instrument, leaving enthusiasts to ponder whether the dream of decentralization is fading.

A Historical Reflection: The Transition from Prohibition to Regulation

Consider the Prohibition Era of the 1920s, when illegal liquor trade flourished despite its ban. Initial rebellion against authority drew many in, but as the landscape changed, even these underground markets became influenced by the same regulations they sought to escape. In the end, the very structure they opposed reshaped their reality. Similarly, the current sentiment in the crypto world mirrors this ebb and flow, as once-idealistic aspirations are now tugged by the strings of traditional financial systems. What began as a fierce independence for crypto may evolve into a regulated norm, blending both dreams and pragmatic market behaviors.