Jim Cramer has rejoined the chat, and market participants can’t decide whether to take him again as a warning or an indicator of the opposite. “It’s finally happening,” he wrote in X, pointing to the crypto market’s sudden spillover into the S&P 500.
According to Cramer, “the tail of cryptocurrencies and specs is wagging the dog at S&P” could be translated to mean that the wild swings in Bitcoin and other coins are pulling stock benchmarks.
It’s finally happening – the crypto/specs tail is wagging the S&P dog. This is what I’ve been most afraid of these past few weeks…
— Jim Cramer (@jimcramer) October 14, 2025
For context, after Bitcoin topped $124,000 earlier this month, it fell to nearly $110,000 in just a few days, wiping out $19 billion in leveraged positions in just an hour’s worth of candlesticks. The S&P 500 chart for the same period shows a mirror image, with a red candle appearing immediately after Bitcoin’s collapse. That’s what Kramer calls “wagging the dog’s tail.”
Not just China
However, the broader situation is more complex, and while many believe that the market decline is due to the escalation of the US-China trade war, at the same time it appears that for cryptocurrencies this is just a trigger, and as some opinions suggest, the real reason lies in the Binance vs. Hyperliquid tension.
Whether you subscribe to anti-Cramerian principles or not, the graph shows a very real correlation. Today BTC is at $111,900 and S&P is around 6,610, both rebounding after synchronous drawdowns.
The days of dismissing Bitcoin as an isolated casino may be over, at least if cryptocurrencies really are driving the rhythm of stocks for now. This is what upsets Kramer and excites everyone betting on him.
