Dow Jones and S&P 500 Hit New Highs, Crypto Stocks Plummet Amid Delisting Concerns

TradingKey - The three major US stock indices performed strongly, but many cryptocurrency stocks plunged against the trend, with a low probability of delisting.

On Wednesday (December 24) local time, the three major US stock indices extended their gains on the eve of Christmas, achieving five consecutive trading days of increases. Specifically, the Nasdaq Composite rose by 0.22%, while the S&P 500 Index and Dow Jones Industrial Average hit new historical highs, climbing 0.32% and 0.6%, respectively.

Year-to-date, the three major US stock indices have broadly maintained strong performance, consistently rising to new highs. To date, the Nasdaq has cumulatively gained over 22%, the S&P 500 nearly 18%, and the Dow over 14%.

Nasdaq (yellow), S&P 500 (blue), Dow Jones (green) trend chart, Source: Google.

Bitcoin ( BTC) as a risk asset, saw its price fluctuations largely align with the three major US stock indices during the first three quarters. In Q1 2025, Bitcoin's price briefly surged before retreating, then bottomed out and rebounded in Q2, strengthening further in Q3. However, Bitcoin's price diverged from the US stock indices after the fourth quarter, and the gap is continuously widening .

Specifically, Bitcoin's price surged to around $126,000 in early October, setting a new historical high, before continuously retreating, ultimately resulting in a cumulative decline of nearly 6% for the year 2025. In contrast, the three major US stock indices experienced a brief pullback in early October, then gradually rebounded to recover losses, and recently reached new highs again.

Bitcoin Price Chart, Source: TradingView.

Bitcoin's significant price pullback dragged down the prices of several cryptocurrency stocks. Among them, Sol Strategies (HODL), a Canadian-listed company focused on investment and infrastructure services for the Solana blockchain ecosystem, plummeted by 88%. Gemini (GEMI), a cryptocurrency exchange that just listed this year, fell sharply by 67%. Strategy ( MSTR ), the largest corporate holder of Bitcoin, saw its stock price drop by 47%.

In the first half of this year, Strategy's stock price surged due to its Bitcoin accumulation, attracting numerous companies to follow suit by purchasing Bitcoin or other cryptocurrencies, which briefly ignited a craze for establishing crypto treasuries. However, as Bitcoin and Strategy's prices have recently continued to decline, the stock prices of many DAT companies have also gradually fallen, even halving, severely impacting investor confidence.

Although Bitcoin's price pullback has caused the DAT craze to subside, such companies are generally unlikely to be delisted for this reason, as investing in cryptocurrencies is only part of their operations; most have their own core businesses. This implies that they do not solely rely on the appreciation of Bitcoin or other cryptocurrencies and have other operating revenues to support their stock prices.

While many DAT companies will not be delisted, one should remain wary of companies like QMMM. QMMM had previously announced the establishment of a crypto reserve, which spurred its stock price to soar nearly 30-fold. Subsequently, the company was ordered to suspend trading by the U.S. Securities and Exchange Commission (SEC) due to suspected market manipulation. Currently, the company's premises are vacant, and its stock remains suspended.