Crypto Assets vs Stocks: The Ultimate Showdown of Returns and Risks in 2025

In today’s investment world, cryptocurrencies and stocks are undoubtedly two of the brightest stars. On one side are traditional assets with a long history, and on the other side is the emerging representative of the digital age. Investors face a key question: who will bring higher returns to their portfolios in the 2025 market? We reveal the answer through data and market performance.

##Long-term Yield Comparison Historical data shows that stocks have shown remarkable stability in long-term investing. Between 1926 and 2024, U.S. equities returned an average of about 10% per year, significantly outperforming traditional asset classes such as gold and bonds. This return is driven by the dual dynamics of corporate earnings growth and dividend distribution, especially in blue chips, which provide capital appreciation while paying dividends on a regular basis to generate consistent cash flow for investors.

In contrast, cryptocurrencies rely almost entirely on price fluctuations for their returns. Although Bitcoin soared by 120% throughout 2024 and increased by over 3% at the beginning of 2025, such high returns are accompanied by severe volatility. For example, in January 2025, Bitcoin fell by 5% in a single day, Ethereum dropped by 8%, and the entire cryptocurrency market plunged by 7%. This volatility makes the long-term return stability of cryptocurrencies far inferior to that of stocks.

##Risk and Volatility

The stock market is subject to strict regulation, with fixed trading hours and relatively controllable price fluctuations. Even during periods of volatility, such as the 1.2% weekly decline of the S&P 500 index in May 2025, its volatility is still far lower than that of cryptocurrencies.

The cryptocurrency market is synonymous with high risk: 24-hour continuous trading, no price limits, and lack of regulation lead to prices being easily influenced by speculative sentiment. In early June 2025, Bitcoin surged 6.9% (from $58,000 to $62,000) in just 4 hours, while the S&P 500 only increased by 0.3% during the same period. This kind of volatility has become the norm, making cryptocurrency more like a “high risk, high return” speculative tool rather than an investment asset.

##Regulatory Environment

The stock market has a mature regulatory framework built over a century, with high transparency and investor rights protected by law. For example, in the Chinese A-share market, the entry of “national team” funds (predicted to reach 500 billion yuan by 2025) provides support for the market.

Cryptocurrencies are still in a regulatory gray area. Regulatory policies vary across countries, with the U.S. SEC still in dispute over the classification of cryptocurrencies, while China has explicitly banned cryptocurrency trading. The lack of regulation has led to high risks of fraud and money laundering. Although expectations that the Trump administration may ease regulations bring some benefits, policy uncertainty remains the sword of Damocles hanging over cryptocurrencies.

##Market Linkage

Traditionally, cryptocurrencies have shown a significant divergence from stock trends. In June 2025, while the Dow Jones increased by 1.1%, Bitcoin fell by 3.2%. However, under special circumstances, both can move in sync: when the Dow rises, Ethereum may also rise in tandem (as in June 2025 when Ethereum increased by nearly 10% in a single day).

A key trend is that the correlation between cryptocurrencies and growth stocks has strengthened. Companies like MicroStrategy are heavily buying Bitcoin, and their stock prices are significantly linked to the price of Bitcoin. When Bitcoin falls, the stock prices of Coinbase and MicroStrategy may fall in sync, indicating that crypto concept stocks have become a bridge between the two.

##Who is the winner? Profit choices vary by “person”.

• Stocks are suitable for: long-term investors seeking stable appreciation and dividend income; those with moderate risk tolerance; and cautious individuals who value regulatory protection. Goldman Sachs predicts that the MSCI China Index is expected to rise by 14% by the end of 2025, highlighting the appeal of stocks after balancing risks.
• Cryptocurrency is suitable for: risk-takers who can withstand significant fluctuations in principal; technical players seeking short-term trading opportunities; believers in the disruptive innovation of blockchain. Despite the volatility of Bitcoin and others, their rigid demand in cross-border payments and anti-inflation is forming a “necessary support” pattern.

##Wise Choice: Balanced Allocation, Dynamic Adjustment

In the battlefield of 2025, stocks remain the “ballast” for long-term returns, while cryptocurrencies act as the “commando” to capture excess returns amidst volatility. Truly smart investors do not bet everything on one side: allocate core assets to stable stocks (recommended ratio 70 - 80%) and simultaneously participate in cryptocurrencies with a small amount of funds (20 - 30%), allowing them to share in the innovation dividend while controlling overall risk.

With the development of cryptocurrency ETFs and the entry of traditional institutions, the boundaries between the two types of assets may gradually blur. Nevertheless, understanding their essential differences is crucial to gaining control over returns in global asset allocation. On the investment chessboard, choosing the right pieces for oneself is key to winning the long-term wealth game.

Author: Blog Team *This content does not constitute any offer, solicitation, or suggestion. You should always seek independent professional advice before making any investment decisions. *Please note that Gate may restrict or prohibit all or part of the services from restricted areas. Please read the user agreement for more information, link: