Crypto markets decoupled from record equity highs this week as capital rotated into AI stocks, with dogecoin and Hyperliquid's HYPE token each falling near 10%.
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DOGE and HYPE drop 10% as AI stocks lure crypto buyers
Dogecoin slid 9.6% to $0.076 and Hyperliquid's HYPE token lost 9.9% over the past seven days, leading a broad crypto selloff as capital rotated into artificial-intelligence stocks that pushed the equal-weight S&P 500 to a record high.
"Bitcoin approached $58,000 at its lows late Thursday and early Friday, but in both cases, aggressive buying quickly pushed it back into the $60,000 range," Alex Kuptsikevich, chief market analyst at FxPro, said. "Given deteriorating sentiment among institutional investors and their ability to quickly divest from cryptocurrencies to stabilise their balance sheets, it is worth preparing for continued pressure and periodic sell-off spikes by leveraged traders."
Ether dropped 8.4% to $1,581 and XRP fell 7.8% to $1.06, while solana and tron held roughly flat at $72 and $0.32, respectively, CoinGecko data shows. Bitcoin proved the steadier major, down 5.3% to around $60,345 after repeatedly rebounding from dips near $58,800.
The divergence highlights a growing gap between digital assets and traditional equities. While the equal-weight S&P 500 hit a record high as money rotated out of semiconductor leaders into a broader set of stocks, crypto captured none of the risk appetite — weighed by persistent outflows from US spot bitcoin ETFs, a hawkish Federal Reserve and a strong dollar.
The rotation out of chipmakers lifted much of the stock market, with the equal-weight S&P 500 at a record. Crypto was not part of it. Ether fell 8% on the week and the memecoins dropped harder.
The swings in chip stocks point to a bigger shift. The optimism around AI is giving way to worries about how far valuations have run, and while few think the AI trade is over, the idea that those stocks only rise is fading. The money leaving semiconductors is spreading into the rest of the market rather than out of risk altogether, and crypto is not catching any of it.
The drags specific to crypto remain. Outflows from US spot bitcoin ETFs, a hawkish Federal Reserve and a strong dollar have weighed all week, and bitcoin is still sitting on its 200-week moving average, a long-term line that has marked extended weak stretches before.
Risk appetite is not gone, only selective, and for now it is passing crypto by.
This article is for informational purposes only and does not constitute investment advice.
[1] Crypto Decouples From Stock Records as DOGE and HYPE Lead Weekly Losses While AI Stocks Rise[2] Stock Market Today, June 26: Keel Infrastructure Rises as Convertible Financing Backs AI Data Center Push[3] Dogecoin and Hyperliquid's HYPE led weekly crypto losses as AI stocks lure buyers[4] Coinbase, Circle underperform Big Tech as crypto stock slump deepens[5] Solana Gains 15% Amid Tokenized Stock Hype, Diverges from Broader Market - KuCoin
