Dogecoin and HYPE tumble as Wall Street rotation bypasses crypto
In brief
- Dogecoin fell 9.6% to $0.076; HYPE token lost 9.9% in weekly crypto losses
- Ether dropped 8.4% to $1,581; Bitcoin fell 5.3% to $60,345
- Wall Street rotation favored steady-growth equities over risk assets like crypto
- Bitcoin ETF outflows, hawkish Fed stance, and dollar strength pressured markets
The rotation leaves crypto behind
The S&P 500 closed little changed, but the equal-weighted version hit a record high—a sign that gains were spreading beyond the mega-cap tech stocks that have dominated the market. Wall Street rotated out of chipmakers and into a broader set of companies tied to steady growth. Semiconductor shares took another leg down after a run that still left them on track for their best quarter ever.
The money flowing out of semiconductors didn't flee risk altogether. Instead, it spread into the rest of the equity market. Crypto caught none of it.
Ether dropped 8.4% to approximately $1,581, while Bitcoin fell 5.3% to around $60,345 on Saturday after dipping to about $58,800 on Friday. XRP fell 7.8% to $1.06 during the week. Solana and Tron held up better, remaining roughly flat at $72 and $0.32 respectively.
Headwinds pile up
Outflows from US spot Bitcoin ETFs, a hawkish Federal Reserve, and a strong dollar have weighed on crypto all week. Optimism around AI is giving way to worries about how far valuations have run, and that shift has reshaped market flows. The rotation into steady-growth equities reflects caution about the near-term, not confidence in crypto.
Bitcoin is sitting on its 200-week moving average, a long-term line that has marked extended weak stretches before. The technical setup matters because it signals how much room remains if selling accelerates.
What traders are watching
"Bitcoin approached $58K at its lows late Thursday and early Friday, but in both cases, aggressive buying quickly pushed it back into the $60K range. This pattern resembles margin position liquidations during downtrend spikes, followed by strong buying on pending orders during the recovery." — Alex Kuptsikevich, FxPro chief market analyst
Kuptsikevich's reading suggests the dip reflected forced selling, not a change in fundamental demand. But given deteriorating sentiment among institutional investors and their ability to quickly divest from cryptocurrencies, the risk of deeper pressure remains. Institutional money moving out of crypto and into equities—even steady-growth ones—is a harder headwind than leverage-driven spikes.
