Is the Stock Market Still Down: Crypto and Equity Trends

Is the stock market still down? This is a pressing question for investors navigating both traditional equities and the fast-evolving crypto landscape. In this article, you'll find the latest data on stock and crypto market performance, key trends shaping both sectors, and what these movements mean for market participants as of late October 2025.

Recent Market Movements: Stocks and Crypto Diverge

As of October 29, 2025, according to CryptoSlate and Reuters, the answer to "is the stock market still down" depends on which segment you examine. U.S. equities, led by mega-cap tech stocks like Nvidia, have reached new highs. Nvidia alone crossed a $5 trillion market value, pushing the S&P 500 to fresh records. However, this rally is concentrated in a handful of AI leaders, while broader market participation remains limited.

In contrast, the crypto market has experienced a notable pullback. Bitcoin fell over 4% to near $111,000, with Ethereum also down over 4% from 24-hour highs. The total crypto market cap lost $100 billion in a single week, reflecting heightened sensitivity to macroeconomic events and thin liquidity. Open interest in crypto futures rebounded to around $30 billion, making prices more vulnerable to liquidations.

Key Drivers Behind Current Market Conditions

Several factors are influencing whether the stock market is still down, especially when comparing equities to crypto:

• Federal Reserve Policy: Investors are closely watching the Federal Open Market Committee (FOMC) decision. The consensus is for a 25 basis point rate cut, but any hawkish signals could trigger further volatility in both stocks and crypto.
• ETF Flows: Spot Bitcoin ETF flows, which set records earlier in October, have cooled. The latest weekly inflows were $1.03 billion, down from a $5.95 billion peak. This reduction in demand has contributed to recent crypto price declines.
• Market Structure: Exchange balances for Bitcoin are near multi-year lows, so even small changes in flows can move prices significantly. Meanwhile, equities benefit from concentrated gains in a few large-cap stocks, masking broader market weakness.

Institutional Adoption and New Investment Products

Despite recent declines, institutional adoption in both markets continues to grow. A major development is Grayscale's listing of its Solana staking ETF (GSOL) on the New York Stock Exchange. This ETF allows investors to gain exposure to Solana and its staking rewards without directly managing the cryptocurrency, making it easier for traditional investors to participate in the crypto ecosystem.

Such products offer:

• Simplified Access: No need for crypto wallets or technical know-how.
• Regulated Environment: Listing on the NYSE brings oversight and compliance.
• Staking Rewards: Investors can earn passive income through staking, with the ETF managing the process.

This trend underscores the increasing demand for regulated, accessible crypto investment vehicles and signals growing institutional confidence in digital assets.

Stock Market Performance: Company-Specific Insights

Looking at individual stocks, volatility remains high, especially among companies with significant crypto exposure. For example, Metaplanet, now the fourth-largest public holder of Bitcoin, recently announced a share repurchase program and a $500 million credit facility. These moves boosted its stock by over 10% in a day, but the price remains 73% below its June peak, highlighting ongoing challenges.

Similarly, shares of American Bitcoin and other treasury companies have seen sharp swings. While American Bitcoin's stock is up 20% over the week after a major BTC acquisition, concerns about valuation persist. The company's market cap is $5.10 billion, far exceeding the value of its Bitcoin reserves, making future performance highly dependent on continued accumulation and market sentiment.

Common Misconceptions and Risk Factors

When asking "is the stock market still down," it's important to recognize common misconceptions:

• Not All Sectors Move Together: Tech giants may lift indices, but many stocks lag behind.
• Crypto and Stocks Are Not Always Correlated: Recent data shows equities can hit new highs even as crypto markets correct.
• ETF and Institutional Flows Matter: Reduced ETF inflows or sudden liquidations can quickly change market direction, especially in crypto.

Risks include ongoing regulatory uncertainty, especially for new crypto products, and the potential for further volatility if macroeconomic conditions shift unexpectedly.

What to Watch Next: Data and Indicators

For those tracking "is the stock market still down," key indicators to monitor include:

• Whether Bitcoin holds above $110,000 into the U.S. close
• Stability or decline in open interest after major events
• Positive net flows in U.S. spot ETFs in the coming sessions
• Changes in put/call skews and market breadth in equities

On-chain activity, such as wallet growth and staking participation, also provides valuable insight into market sentiment and adoption trends.

Further Exploration: Stay Ahead with Bitget Insights

While the answer to "is the stock market still down" is nuanced, the latest data shows a divergence between equities and crypto, with each responding to unique drivers. For investors and enthusiasts, staying informed is crucial. Bitget offers a suite of tools and resources to help you track market trends, manage risk, and explore new opportunities in both traditional and digital assets.

Ready to deepen your understanding? Explore more Bitget market insights and discover how institutional adoption, innovative ETFs, and evolving market structures are shaping the future of investing.