Crypto majors trail stocks as ETF flows fade

Bitcoin, ether, XRP and dogecoin lost ground as Wall Street’s strongest winning run in more than two years drew capital towards equities, leaving the largest digital assets struggling to benefit from improved risk appetite across global markets.

The divergence sharpened after the S&P 500 completed a ninth consecutive weekly advance, its longest winning streak since 2023, while Brent crude stabilised near $92 a barrel on hopes that Washington and Tehran could extend a ceasefire and ease pressure on energy markets. The shift helped equities and other risk-sensitive assets, but crypto markets remained under strain as exchange-traded fund demand cooled and traders cut exposure to benchmark tokens.

Bitcoin hovered near the lower end of its May range after failing to hold momentum above $80,000 earlier in the month. Ether also weakened, while XRP and dogecoin lagged despite intermittent inflows into selected alternative-token products. The price action highlighted a more selective market in which investors are no longer treating all crypto assets as a broad risk-on trade.

Hyperliquid’s HYPE token stood out as the only major name to rally, supported by fresh demand for products linked to the decentralised derivatives platform and by interest in its fee-driven buyback mechanics. The token’s outperformance contrasted with redemptions from bitcoin and ether funds, suggesting that capital has not left digital assets entirely but has rotated towards narrower themes with stronger short-term catalysts.

US-listed spot bitcoin ETFs, which had been central to the market’s 2024 and 2025 institutional adoption narrative, faced a renewed wave of withdrawals during May. Ether products also saw persistent outflows, underscoring weaker appetite among professional investors after a stretch of price volatility, rising geopolitical risk and uncertainty over the next phase of US crypto regulation.

The softness has come even as broader markets have taken encouragement from falling oil prices, solid corporate earnings and continued enthusiasm around artificial intelligence-linked shares. Technology stocks helped drive the S&P 500 higher, while the Nasdaq also benefited from renewed demand for chipmakers, server manufacturers and companies tied to AI infrastructure spending.

Crypto’s failure to track that rally points to a change in market structure. During earlier phases of the cycle, bitcoin often moved in line with high-growth technology assets as traders priced in looser financial conditions and rising liquidity. This time, bitcoin’s response has been muted, with ETF flows, regulatory timing and technical trading levels exerting more influence than the broader equity rally.

Oil’s retreat offered another test of bitcoin’s role in macro portfolios. Brent’s fall from levels above $100 to near $92 reduced fears of an inflation shock and helped ease pressure on risk assets. Yet bitcoin did not attract the kind of safe-haven or liquidity-driven demand that some long-term advocates had expected during geopolitical stress. Gold and government bonds retained a more conventional role in hedging uncertainty, while bitcoin traded more like a speculative asset exposed to funding conditions.

Market participants have also been watching the US legislative calendar. Pending crypto market-structure rules and stablecoin legislation remain important for exchanges, token issuers and asset managers. A clearer framework could support institutional participation, but delays or political disputes may keep larger investors cautious, particularly after several weeks of ETF redemptions.

Ether’s weakness reflects additional challenges. The network remains central to decentralised finance, tokenisation and stablecoin settlement, but its investment case has been complicated by competition from faster blockchains, subdued fee revenue and uncertainty over whether ETF access alone can produce sustained demand. Ether products have not matched the scale of bitcoin ETF adoption, leaving the asset more vulnerable when risk appetite cools.

XRP has shown relative resilience compared with some large-cap tokens, helped by expectations around payment use cases and fund inflows, but it has not escaped the broader drag from weaker crypto liquidity. Dogecoin remains more sensitive to speculative retail flows and social-media-driven momentum, both of which have been subdued as traders focus on macro headlines and exchange-traded fund data.