A rotation away from semiconductor stocks lifted much of the broader equity market, pushing the equal-weight S&P 500 to a record high. Crypto markets, however, failed to participate, with ether falling 8% on the week and memecoins posting even steeper declines.
Dogecoin and Hyperliquid’s HYPE led the losses, each dropping करीब 10% as capital continued to shift toward AI-driven equities and away from major digital assets.
Dogecoin fell 9.6% over the past seven days to roughly $0.076, while HYPE slid 9.9%, marking the sharpest declines among large-cap tokens. Ether dropped 8.4% to around $1,581, and XRP lost 7.8% to $1.06. In contrast, Solana and Tron held relatively steady, ending the week mostly flat near $72 and $0.32.
Bitcoin showed comparatively stronger resilience, down 5.3% to about $60,345 by Saturday after briefly dipping to $58,800 on Friday before rebounding, 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 liquidation-driven drops followed by aggressive dip buying.”
He added that weakening institutional sentiment and the ease with which investors can reduce crypto exposure to stabilize balance sheets may keep pressure on the market, with intermittent sell-offs driven by leveraged positions.
The divergence between crypto and equities remains pronounced. While digital assets struggled, Wall Street rotated out of high-flying chip stocks into a broader mix of companies tied to steady growth.
Although the S&P 500 ended little changed, most of its components advanced, and the equal-weight index reached a new high. Lower oil prices supported sentiment, while semiconductor stocks extended their pullback after a strong rally that still leaves them on track for a record quarter.
These moves signal a broader shift in market dynamics. While enthusiasm around AI persists, concerns about stretched valuations are growing, weakening the narrative of uninterrupted gains. Capital is rotating within equities rather than exiting risk assets entirely, with crypto failing to capture those flows.
Crypto-specific headwinds remain in place. Outflows from U.S. spot bitcoin ETFs, a hawkish Federal Reserve, and a strong dollar weighed on prices throughout the week. Bitcoin continues to hover near its 200-week moving average, a level historically associated with prolonged periods of weakness.
