Crypto Diverges from Equities: S&P 500 Wins While Bitcoin Falls

The cryptocurrency market has decoupled from US equities, with the S&P 500 experiencing a nine-week winning streak while Bitcoin and Ethereum decline.

This divergence is attributed to ETF outflows and institutional de-risking, which are specific headwinds facing the crypto market. The Iran ceasefire agreement optimism is lifting equities but not crypto.

The cooling of spot Bitcoin ETF inflows has been identified as a key pressure on crypto prices. After accumulating nearly $3.4 billion in inflows through March and April, May has seen over $2 billion leave the Bitcoin ETF complex.