A shift away from semiconductor stocks helped lift the broader equity market, sending the equal-weight S&P 500 to a record high. Crypto assets, however, were left behind, with ether dropping 8% on the week and memecoins posting even sharper losses.
Dogecoin and Hyperliquid’s HYPE led the downturn, each falling करीब 10% as capital continued rotating into AI-linked equities and away from major cryptocurrencies.
Dogecoin declined 9.6% over the past week to around $0.076, while HYPE dropped 9.9%, marking the steepest losses among major tokens. Ether slid 8.4% to roughly $1,581, and XRP fell 7.8% to $1.06. Meanwhile, Solana and Tron showed relative resilience, ending the week mostly flat at about $72 and $0.32.
Bitcoin held up better than most, down 5.3% to around $60,345 by Saturday after briefly dipping to $58,800 on Friday before recovering, according to CoinDesk data.
“Bitcoin tested the $58,000 level late Thursday and early Friday, but strong buying quickly pushed it back toward $60,000,” said Alex Kuptsikevich, chief market analyst at FxPro. “The move reflects liquidations during sharp drops, followed by aggressive buying as prices rebound.”
He warned that weakening institutional sentiment and the ability of investors to quickly exit crypto positions to stabilize balance sheets could keep pressure on the market, with intermittent sell-offs driven by leveraged traders.
The divergence between crypto and equities remains stark. While digital assets struggled, Wall Street rotated out of high-flying chip stocks into a broader range of companies tied to steady growth.
Although the S&P 500 finished largely unchanged, most of its components advanced, and the equal-weight index reached a new high. Lower oil prices supported sentiment, while semiconductor shares extended their pullback after a strong rally that still leaves them on track for a record quarter.
The shifts point to a broader change in market dynamics. While enthusiasm around AI remains, concerns about stretched valuations are emerging, weakening the narrative of uninterrupted gains. Capital is rotating within equities rather than exiting risk assets altogether, with crypto failing to capture those flows.
Crypto-specific headwinds also persist. Outflows from U.S. spot bitcoin ETFs, a hawkish Federal Reserve, and a strong dollar have weighed on prices throughout the week. Bitcoin remains near its 200-week moving average, a level historically associated with prolonged periods of weakness.
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