The S&P 500 notched its longest weekly winning streak since 2023, yet major cryptocurrencies diverged sharply. Bitcoin, ether, XRP and dogecoin all drifted lower over the period, failing to participate in the equity market rally.
The divergence comes as exchange-traded fund demand for crypto appears to be cooling, according to CoinDesk. Meanwhile, Brent crude oil stabilized near $92 per barrel amid reports of potential US-Iran ceasefire negotiations, an optimistic macro signal that typically supports risk assets but did not lift digital currencies.
Hyperliquid's HYPE token was the only major cryptocurrency to rally during the stretch, standing apart from the broader crypto downturn. The token's strength contrasted with the weakness in larger, more established digital assets.
The underperformance of cryptocurrencies relative to equities suggests a rotation in investor appetite, with money flowing into traditional risk-on assets like stocks rather than crypto. If ETF inflows continue to soften, the gap between crypto and equity performance could widen further.