The cryptocurrency market has been experiencing a significant divergence from US equities, with the S&P 500 rising for nine consecutive weeks while Bitcoin and Ethereum fell. This decoupling is a stark contrast to previous years, where cryptocurrency prices tended to follow the trend of equities.
Market analysts have identified the cooling of spot Bitcoin ETF inflows as the primary pressure on crypto prices. The outflows have been substantial, with over $2 billion leaving the Bitcoin ETF complex in two weeks. This trend suggests that institutional investors are de-risking, which is putting pressure on crypto prices.