Jim Cramer has once again joined the conversation, leaving market participants unsure whether to heed his words as a caution or view them as a contrary signal. “It’s finally happening,” he announced on X, highlighting the unexpected influence of the crypto market on the S&P 500.
Cramer suggests that “the crypto/spec tail is wagging the S&P dog,” meaning that Bitcoin and other cryptocurrencies are causing significant fluctuations in stock indices.
The moment has arrived—the Crypto/spec tail is indeed wagging the S&P dog. This was my greatest concern over recent weeks…
— Jim Cramer (@jimcramer) October 14, 2025
To provide some context, Bitcoin surged past $124,000 earlier this month before plummeting to nearly $110,000 within days. This rapid decline wiped out $19 billion in leveraged positions in just one hour. During this period, the S&P 500 chart mirrored these movements with red candles appearing right after Bitcoin’s downturn. Cramer refers to this phenomenon as “the tail wagging the dog.”
Beyond Just China
The broader situation is more complex than it seems at first glance. While many blame market sell-offs on escalating U.S.-China trade tensions, for cryptocurrencies like Bitcoin, these events appear merely as triggers rather than root causes. Some experts argue that ongoing issues between Binance and Hyperliquid are more significant factors.
No matter your stance on Cramer’s perspective, there’s undeniable evidence of correlation in recent charts: BTC stands at $111,900 today while the S&P hovers around 6,610—bouncing back after simultaneous declines.
If cryptocurrency truly influences equity markets now, dismissing Bitcoin merely as an isolated gamble may be outdated thinking. This prospect unsettles Cramer but thrills those betting against him.