Equities continue to outpace cryptocurrencies, with the S&P 500 marking its longest weekly winning streak since early 2023. In contrast, major cryptos including Bitcoin, Ether, XRP, and Dogecoin drifted lower amid a clear cooling in demand for crypto ETFs. Brent crude oil steadied near $92 a barrel, buoyed by renewed optimism over a US-Iran ceasefire, yet digital assets barely budged.
Hyperliquid’s native token HYPE was the exception, posting a modest rally, but this was a rare blip in an otherwise cautious crypto market. The divergence highlights waning retail and institutional appetite for digital assets despite ongoing macroeconomic tailwinds favoring riskier investments.
ETF inflows, a critical liquidity source for bitcoin and ether, dried up this week. Data from market trackers show weekly ETF volumes dropped by nearly 30% compared to the previous month. This slowdown has reversed the momentum that digital currencies gained during earlier stretchsof the year, when rising ETF volumes helped underpin broader market confidence.
Traders attribute the slump to regulatory uncertainty and a lack of fresh catalysts. The SEC’s position on new spot bitcoin ETFs remains unsettled, and competing narratives about the durability of crypto’s correlation with traditional markets have caused hesitation. Bitcoin failed to hold the $28,000 support level, ending the week around $27,400, while Ether languished below $1,900.
Altcoins fared no better; XRP slid 4.5% amid ongoing litigation concerns, and Dogecoin declined nearly 6%, dragged down by lower speculative interest. Market participants note that rising yields and a stable dollar are making bitcoin and other cryptocurrencies less attractive as a hedge or speculative asset.
The coming weeks will hinge on several critical indicators. The SEC’s forthcoming decision on multiple spot bitcoin ETF applications could re-ignite flows, while macro volatility may boost crypto’s appeal as a diversifier. If Bitcoin breaks below the $27,000 level decisively, it could trigger stop-loss cascades and further downside pressure.
Investors should watch ETF trading volumes closely and monitor liquidity conditions in crypto derivatives markets. The current dislocation between equities and digital assets reflects deeper structural challenges for crypto ETFs that may persist until clearer regulatory pathways emerge.
Bitcoin, Ether, XRP, Dogecoin Underperform as Stock Rally Extends to Nine Weeks
Despite a strong nine-week rally in stocks and stable Brent oil prices, major cryptocurrencies including Bitcoin, Ether, XRP, and Dogecoin continued to drift lower amid cooling ETF demand.