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

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

Long-term Return Comparison

Historical data shows that stocks exhibit remarkable stability in long-term investments. From 1926 to 2024, the average annual return of U.S. stocks is approximately 10%, significantly surpassing traditional asset classes such as gold and bonds. This return is driven by the dual forces of corporate profit growth and dividend distribution, especially blue-chip stocks, which provide capital appreciation while regularly distributing dividends, creating a continuous cash flow for investors.

In contrast, the returns of Crypto Assets almost entirely depend on price fluctuations. Although Bitcoin surged by 120% throughout 2024 and rose over 3% at the beginning of 2025, the high returns came with extreme volatility. For example, in January 2025, Bitcoin plummeted by 5% in a single day, Ethereum dropped by 8%, and the entire Crypto Assets market fell sharply by 7%. This volatility makes the long-term return stability of Crypto Assets far inferior to that of stocks.

Risks 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 drop in the S&P 500 Index in May 2025, its fluctuation range is still far lower than that of Crypto Assets.

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

Regulatory Environment

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

Crypto Assets are still in a regulatory gray area. Regulatory policies vary across countries, with the U.S. SEC still in dispute over the classification of Crypto Assets, while China has explicitly banned Crypto Asset trading. The lack of regulation leads to high risks of fraud, money laundering, and more. Although expectations of regulatory relaxation under the Trump administration may bring benefits, policy uncertainty remains the sword of Damocles hanging over Crypto Assets.

Market Linkage

Traditionally, Crypto Assets and stock trends have shown significant divergence. In June 2025, while the Dow Jones rose by 1.1%, Bitcoin fell by 3.2%. However, in special circumstances, both can move in sync: when the Dow rises, Ethereum may also increase simultaneously (for example, in June 2025, Ethereum rose nearly 10% in a single day).

A key trend is: the correlation between Crypto Assets and growth stocks has increased. Companies like MicroStrategy are buying large amounts of Bitcoin, and its stock price is related to Bitcoin price Significant linkage. When Bitcoin falls, the stock prices of Coinbase and MicroStrategy may decline in tandem, indicating that Crypto Assets 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 risk.
• Crypto Assets are suitable for: risk-tolerant individuals 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 for cross-border payments and anti-inflation is forming a “rigid demand bottoming” pattern.

Wise Choice: Balanced Allocation, Dynamic Adjustment

In the battlefield of 2025, stocks remain the “ballast” for long-term returns, while crypto assets are the “commandos” capturing excess returns amidst volatility. Truly smart investors do not go all in on one side: they allocate core assets to stable stocks (suggested ratio 70 - 80%) while participating in crypto assets with a small amount of funds (20 - 30%), allowing them to share in the innovation dividends 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. However, 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.