Crypto and Stocks are two of the most active markets globally, especially during periods of uncertainty and volatility. Research shows that the correlation between these popular markets has grown in recent years, driven by evolving investor behaviours, shared macroeconomic factors, and increasing institutional participation. As recently as September 20241, the correlation between the top 100 Cryptocurrencies and the S&P 500 was at 67%, the second-highest level on record, indicating a strong positive relationship.
But what other similarities are there between Crypto and Stocks? How do investor behaviours differ across the two markets? And, how can traders take advantage of both with a multi-asset broker like PrimeXBT? Read on to find out.
Crypto & Stock Investor Demographics
Over 60%2 of Cryptocurrency investors are between 25 and 44 years old and highly educated, with almost 50% having a bachelor’s degree. Stock market demographics are more varied. However, Millennials and Gen Z are becoming increasingly active3 earlier than previous generations and higher education generally leads to increased Stock market participation. Recent trends show that both markets are being quickly adopted by younger generations who often use online platforms for their trading activities.
Although institutional investment in Crypto has grown significantly in recent years, the market is still dominated by retail investors, with most opting to invest less than $10k per year. On the other hand, investment amounts vary more wildly when it comes to Stocks due to the participation of retail and institutional investors at different scales. Both markets are male-dominated, although the gap is more pronounced in Crypto, where data shows 89% of investors are men.
Behaviours, Characteristics & Strategies
There is a lot of overlap when it comes to investors in the Crypto and Stock markets. Both sets of investors show a willingness to engage in volatile assets, indicating higher risk appetite than those in other markets. Crypto and Stock traders also display higher market responsiveness, often quickly adjusting their portfolios in response to macroeconomic indicators like inflation and interest rate changes.
Online platforms, mobile apps, and expert tools including algorithmic trading are also common to traders in both markets. This reflects confidence from both sets of investors in technology-driven strategies. When it comes to trading strategies, 76% of Cryptocurrency investors focus on spot trading2 over staking or derivatives. Comparatively, Stock traders employ a much wider range of strategies, including day trading, options trading, futures trading, and more, depending on individual risk tolerances.
Bitcoin & NASDAQ’s Recent Decoupling
Although past data has shown a strong correlation between Crypto and Stocks, with Bitcoin often considered a leveraged play on the NASDAQ, recent research shows this relationship may be weakening. By late 2024, Bitcoin’s correlation with the NASDAQ had decreased significantly to 46%4, suggesting a possible shift towards the top Crypto behaving more independently from traditional equities. This shift seems to be continuing into 2025, as turbulent markets have seen Bitcoin and NASDAQ’s prices diverge further5, especially during key events and important economic announcements.
This changing behaviour underscores the importance to investors of always staying up-to-date with the latest news and analysis. Understanding the shifting correlations between markets is key to creating a balanced and diversified portfolio, as well as creating tailored strategies for specific market conditions.
Bridging the Gap Between Digital & Traditional Markets
With leading multi-asset online broker PrimeXBT, clients can trade Stock CFDs on some of the most dynamic companies including AMD, Netflix, and Tesla. In addition, they can also access 40+ popular Crypto CFDs, including BTC, ETH, and BNB. More importantly, the broker supports both USD and USDT as collateral. This empowers Crypto investors to start trading Stocks and other markets simply by exchanging their tokens for USDT with the broker’s built-in exchange. Conditions are competitive, with fees starting from 0%, tight spreads and high leverage.
The broker has built an innovative, all-in-one trading ecosystem that brings Crypto Futures, Forex & CFD trading, MetaTrader 5 (MT5), and a Crypto exchange functionality, all under one roof. Clients benefit from convenient access to 100+ markets alongside the ability to buy, sell, and exchange digital currencies. On MT5, traders can take advantage of expert tools including 38+ technical indicators, 44+ charting tools, and Expert Advisors (EAs) to identify market correlations and new emerging trends. PrimeXBT also offers TradingView integration for deeper market analysis, allowing clients to tailor their strategies for specific conditions.
The Future of Trading & Investing is Multi-Asset
Although the latest data shows a weakening correlation between Crypto and Stocks, similarities in investor demographics and behaviours suggest a unified push towards diversification. This supports the increasing demand from retail investors worldwide, who want access to different markets in one place. Innovative brokers like PrimeXBT, which focus on combining traditional and digital markets into one seamless experience, are leading the way as the industry moves towards a multi-asset future.
Start trading Crypto, Stocks & more with PrimeXBT
Disclaimer: The content provided here is for informational purposes only and is not intended as personal investment advice and does not constitute a solicitation or invitation to engage in any financial transactions, investments, or related activities. Past performance is not a reliable indicator of future results. The financial products offered by the Company are complex and come with a high risk of losing money rapidly due to leverage. These products may not be suitable for all investors. Before engaging, you should consider whether you understand how these leveraged products work and whether you can afford the high risk of losing your money. The Company does not accept clients from the Restricted Jurisdictions as indicated on its website. Some products and services, including MT5, may not be available in your jurisdiction. The applicable legal entity and its respective products and services depend on the client’s country of residence and the entity with which the client has established a contractual relationship during registration.
