Citi Reports Stronger Crypto–Stock Correlation as Market Volatility Returns
October 28, 2025
Bitcoin and ether are once again trading in sync with traditional assets, according to a recent report from Citi (C). The bank said correlations between cryptocurrencies, U.S. equities, and gold have strengthened in recent weeks as global market volatility picks up.
Citi analysts Alex Saunders and Nathaniel Rupert attributed the renewed alignment to macro pressures, citing early October’s “Black Friday” episode—when U.S.–China trade tensions triggered simultaneous declines in both crypto and equities—as a clear example of tightening connections across markets.
“Equities continue to be the primary macro driver of crypto price movements,” the analysts wrote, noting that while correlations with gold have eased slightly, they remain higher than historical averages.
The report also suggested that regulation could eventually help decouple digital assets from traditional markets by introducing crypto-specific catalysts, though this shift has not yet taken hold.
Volatility levels have risen across risk assets. One-month implied volatility in bitcoin (BTC $115,571) and ether (ETH $4,146) now exceeds three-month averages, signaling a more turbulent trading environment.
Bitcoin’s volatility, though below its one-year mean, remains closely linked to moves in stocks and gold. Ether, by contrast, has shown higher short-term volatility, a trend that emerged in late 2023 and has persisted despite steadier sentiment from ETF-related inflows.
Citi concluded that while the crypto market has matured, traditional macro forces still dominate, with rising volatility once again binding digital assets and equities more tightly together.
