Stock in the S&P 500 refers to shares of companies included in the Standard & Poor’s 500 Index, a benchmark tracking the performance of 500 leading publicly traded U.S. companies. As of September 2025, changes in the S&P 500 composition and the Federal Reserve’s policy moves are reshaping both equity and crypto markets. Understanding these developments helps investors and crypto enthusiasts grasp broader market trends and potential opportunities.
The S&P 500 is widely regarded as a barometer for the U.S. stock market. To qualify, a company must meet criteria such as minimum market capitalization, liquidity, profitability, and a broad public float. However, the selection committee also exercises discretion, prioritizing financial stability and diversified business models.
In September 2025, the S&P Dow Jones Indices committee made headlines by excluding MicroStrategy (now rebranded as "Strategy") from the index, despite the company’s $95.95 billion market cap and record $10 billion net income in Q2 2025. Instead, firms like Robinhood and AppLovin Corp. were added. The committee cited concerns about MicroStrategy’s heavy reliance on Bitcoin price movements—holding 636,505 BTC (worth ~$70 billion)—which introduces earnings volatility not aligned with the index’s preference for stable, diversified revenue streams. (Source: Official S&P Dow Jones Indices announcement, September 2025)
MicroStrategy’s exclusion had immediate financial effects. The company missed out on an estimated $10–16 billion in passive fund inflows typically triggered by S&P 500 inclusion. Its stock dropped about 2% in after-hours trading following the announcement. Analysts noted that index-linked buying could have stabilized the stock price, reducing its sensitivity to Bitcoin’s volatility.
JPMorgan strategists highlighted that this decision signals caution toward including companies that function as "Bitcoin funds." The move may deter other index providers from adding crypto-focused firms, potentially slowing mainstream acceptance of digital assets. While companies like Coinbase and Block Inc. remain in the S&P 500, the committee’s emphasis on sectoral balance and diversified operations means crypto-related businesses with significant exposure to volatile assets face heightened scrutiny. (Source: JPMorgan market commentary, September 2025)
As of September 17, 2025, the U.S. Federal Reserve is expected to cut interest rates by 25 basis points after a 10-month pause. Historically, small-cap stocks outperform large caps like those in the S&P 500 following such rate cuts. According to Canaccord Genuity, in similar cycles since 1980, the Russell 2000 averaged 35% returns versus 23% for the S&P 500 in the following year. (Source: Canaccord Genuity, September 2025)
This rate cut comes at a time when the S&P 500 is trading at all-time highs, with a price-to-book ratio of 5.3x—its highest level ever. While some analysts, like Tom Lee of Fundstrat Global Advisors, view the Fed’s dovish stance as bullish for equities and risk assets, others warn that further cuts could fuel inflation and speculative activity. (Source: Bloomberg, The Kobeissi Letter, September 2025)
The interplay between S&P 500 stocks and the crypto market is increasingly relevant. As the Fed injects liquidity by lowering rates, capital often flows into high-growth assets, including cryptocurrencies. In September 2025, Bitcoin hovered near $116,000, facing resistance as investors awaited the Fed’s decision. Altcoins like XRP, SUI, BNB, and Hyperliquid outperformed, with the altcoin season index rising above 75%—a signal of potential sector rotation. (Source: Cryptopolitan, September 17, 2025)
On-chain data shows that U.S. Bitcoin spot ETFs recorded $292 million in net inflows on September 16, led by BlackRock’s iShares Bitcoin Trust. This suggests that investors are increasing exposure to Bitcoin and altcoins as a hedge against macroeconomic shifts. However, the S&P 500’s reluctance to include crypto-heavy companies like MicroStrategy may limit broader institutional validation for digital assets in the near term.
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