Donald Trump has said that the stock market will go higher, which could lead to a rally in the crypto market given BTC's correlation with stocks.

United States President Donald Trump will likely trigger an indirect crypto market rally, given his latest forecast for the mainstream stock market, driven by his administration's new policies.



While many experts have noted that the Trump administration's policies have nearly crippled the economy, new developments show that a large-scale shift is afoot.

Donald Trump, the correlation between stocks and the crypto market

During a recent speech, President Trump said that his visit to Saudi Arabia has brought in over $1 trillion in investment for the United States.

He highlighted upcoming commercial deals with major companies like Amazon and Oracle. According to him, these investments will boost the stock market and create jobs.

At an investment forum event in Riyadh, Saudi Arabia, Donald Trump addressed past criticism of his support for asset investments.

He insisted that those who followed his initial advice have now seen the benefits. He predicted that an investment boom is coming. He added that stocks will respond strongly to the direction of the new policy, likely to rub off on the crypto market.

May 12, the S&P 500 turned positive as it closed 3.26% higher at 5,844.19, officially entering a bull market.

It has gained more than 1,000 points in the past month, erasing previous losses for 2025. Analysts said the market's rally was supported by optimism surrounding the US-China trade talks, which resulted in a 90-day hiatus on levies.

Bitcoin and Retail $BTC Investors Shape the Crypto Market Narrative

It is worth noting that when the stock rose, the crypto market led by Bitcoin also gradually climbed.

According to CoinMarketCap, the largest cryptocurrency is trading at $104,287.29, which represents a 1.68% increase in 24 hours.

Santiment data shows that wallets between 10 and 10,000 BTC raised 83,000 BTC in 30 days.

On the other hand, smaller wallets holding less than 0.1 BTC sold 387 BTC, signaling a wave of profit-taking among retail traders.

This activity shows that large investors are still confident in Bitcoin’s direction. During the same period, the cryptocurrency rose from $85,000 to $105,000, matching the strength seen in traditional equities.

Correlation between Bitcoin and the S&P 500 raises questions.

In a recent post on X, Bloomberg's Mike McGlone also indirectly weighed in on the correlation between the crypto market and stocks.

He noted that Bitcoin's correlation with the S&P 500 is rising. He believes that the crypto market exhibits leveraged beta behavior and that Bitcoin now has more systematic risk.

However, CryptoQuant data revealed that buying pressure for Bitcoin has increased. On May 13, the indicator rose to 1.02, indicating the dominance of short-term buyers.

Many analysts now wonder if crypto could soon match the stock market's recent and future breakout momentum as predicted by President Donald Trump.

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