U.S. Stock Market Opens Lower As Crypto Market Rebounds.

The U.S. stock market began 2025 with modest losses, extending a downturn from the end of 2024. On January 2, the S&P 500 declined by 0.2%, marking its fifth consecutive loss, while the Dow Jones Industrial Average fell by 0.4% (152 points), and the Nasdaq Composite slipped 0.2%.

A significant factor in the market's decline was Tesla's performance. The company's stock dropped 6.1% after reporting lower-than-expected vehicle deliveries for the fourth quarter, indicating potential challenges in demand and economic conditions.

In contrast, the cryptocurrency market showed signs of recovery. Bitcoin's price rebounded above $97,000 after ending 2024 on a losing streak. This resurgence positively impacted crypto-related stocks; for instance, shares of MicroStrategy, a major Bitcoin holder, rose by 3.6%.

Analysts remain optimistic about Bitcoin's trajectory, with some predicting it could reach $225,000 by the end of 2025. Factors contributing to this outlook include historical price cycles, anticipated regulatory support under the Trump administration, and increasing institutional adoption.

Overall, while the U.S. stock market faced a subdued start to the new year, the cryptocurrency sector exhibited a notable rebound, suggesting a potential shift in investor sentiment.