Wall Street Strategists Warn of Potential Bitcoin and Stock market Crash
NEW YORK – Top strategists on Wall Street are increasingly forecasting a potential crash for both Bitcoin and the stock market, citing historical patterns linked to Federal Reserve interest rate policy and labor market conditions.Concerns are mounting that a weakening labor market could jeopardize the current bull run for Bitcoin, despite previous positive outcomes following rate cuts.
The warnings come as Bitcoin aims to reach 200 points halfway through 2026, and the S&P 500 trades within 2% of its all-time high.Historically, the S&P 500 has risen in the 12 months following all 20 instances where the Federal Reserve cut interest rates while the index was close to a record, with an average return of 13.9% and a median of 9.8%, according to data from Ryan Detrick and Carson Group. However,strategists caution that a meaningful weakening in the labor market could disrupt this pattern.
Ryan Detrick, CMT, highlighted on September 14, 2025, that the Fed is likely to cut rates with the S&P 500 within 2% of an all-time high, a scenario that has historically preceded gains. “Higher a year later 20 out of 20 times,” Detrick tweeted. Despite a near-miss rate cut in October 2007, the data doesn’t suggest a bearish outlook.
Despite this historical precedent, analysts emphasize the importance of monitoring the labor market.A substantial downturn could undermine Bitcoin’s bull market, given its tendency to move in sync with the S&P 500.The future outlook for Bitcoin remains positive for now, but contingent on continued labor market strength.
