Major Cryptocurrencies Lag as Stocks Rally on Ceasefire Hopes

Major cryptocurrencies have failed to mirror the performance of traditional markets, as the S&P 500 achieved its longest weekly winning streak since 2023 [1]. While U.S. stocks and oil prices rallied on optimism regarding a potential U.S.-Iran ceasefire extension, bitcoin and other large-cap tokens experienced declines ranging from 2% to 6% [1].

Key takeaways

• The S&P 500 recorded its ninth consecutive weekly gain, rising nearly 20% from its March lows [1].
• Bitcoin fell 2.6% to $73,445, while ether dropped 2.5% to $2,011 over the same period [1].
• Digital asset investment products saw $1.67 billion in outflows last week, marking the second-largest weekly withdrawal of 2026 [1].
• Hyperliquid’s HYPE token surged 19.4% following positive remarks from Intercontinental Exchange chief Jeffrey Sprecher [1].
• The broader market remains sensitive to geopolitical developments, specifically the pending U.S.-Iran ceasefire negotiations [1].

Divergence Between Crypto and Macro Markets

The disconnect between the crypto market and the broader macro environment has been attributed largely to cooling demand for spot bitcoin exchange-traded funds (ETFs) [1]. This cooling interest has coincided with significant capital flight from digital asset investment products, which have seen $4.21 billion in redemptions over the past three weeks [1]. As of late May 2026, assets under management for these products fell to approximately $141 billion, the lowest level since early in the year [1].

While major assets like bitcoin, ether, and solana struggled, some smaller tokens bucked the trend. Hyperliquid’s HYPE token rose to $65 after Jeffrey Sprecher, head of the Intercontinental Exchange, described the decentralized perpetuals venue as being "bigger than NASDAQ" [1]. Additionally, BNB and XRP managed to post modest weekly gains of 1.9% and 0.7%, respectively [1].

Why it matters

The current market environment remains fragile, as the rally in traditional assets like the S&P 500 and Brent crude is heavily tied to hopes for a 60-day ceasefire extension between the U.S. and Iran [1]. President Donald Trump has indicated a willingness to finalize a preliminary agreement, but he has maintained strict conditions, including the requirement that Iran abandon its nuclear program and surrender its enriched uranium [1]. Because these demands exceed what Iran has publicly signaled it would accept, analysts suggest the current macro rally is vulnerable to sudden reversals if geopolitical tensions escalate [1]. Investors are now watching for further developments in these negotiations, as any negative headlines could quickly shift market sentiment [1].