Cryptocurrency Markets Decouple from US Equities Amid ETF Outflows

The current market environment has led to a notable decoupling between cryptocurrency markets and US equities. Despite the optimism surrounding an extended US-Iran ceasefire agreement, which has lifted stocks and oil prices, Bitcoin and Ethereum have declined in value.

The S&P 500's nine-week winning streak is a clear indication of how equity markets are reading the geopolitical situation as a gradual de-escalation that reduces inflation tail risks and supports corporate earnings. However, crypto did not participate in this move higher, with most major tokens declining on the week.