Citi: Crypto’s Correlation With Stocks Strengthens as Volatility Rises
October 28, 2025

Bitcoin and ether are once again moving in tandem with U.S. equities and gold, according to a new report from investment bank Citi (C). The bank said correlations between digital assets and traditional markets have tightened in recent weeks amid a resurgence of market volatility.

Citi analysts Alex Saunders and Nathaniel Rupert attributed the renewed connection to broader macro stress, noting similarities to crypto’s “Black Friday” earlier this month, when escalating U.S.–China trade tensions sparked simultaneous sell-offs across stocks and cryptocurrencies.

“Equities remain the dominant macro driver behind crypto price action,” the analysts wrote, adding that while correlations with gold have dipped slightly, they remain elevated compared to historical norms.

The report suggested that regulatory developments could eventually help crypto decouple from traditional markets by creating distinct sector-specific catalysts. However, Citi noted that such divergence has yet to emerge in recent trading patterns.

Volatility has also picked up across risk assets. One-month implied volatility in both bitcoin (BTC $115,571) and ether (ETH $4,146) has climbed above three-month averages, signaling a short-term uptick in uncertainty.

While bitcoin’s current volatility remains below its one-year average, it continues to track swings in both equities and gold closely, Citi said. Ether, meanwhile, has shown sharper short-term fluctuations, a trend that began in late 2023 and has persisted even as ETF optimism has helped stabilize the broader market.

Overall, Citi’s findings suggest that despite hopes for crypto to trade more independently, macro forces and investor sentiment in traditional markets continue to set the tone for digital assets as volatility returns to global markets.