Dogecoin, Hyperliquid’s HYPE Lead Weekly Losses as AI Stocks Attract Capital

A rotation away from semiconductor stocks helped lift much of the broader equity market, pushing the equal-weight S&P 500 to a record high. Crypto assets, however, did not participate, with ether falling 8% on the week and memecoins posting even steeper losses.

Dogecoin and Hyperliquid’s HYPE led declines across the crypto market, each dropping close to 10% as capital continued shifting toward equities tied to the artificial intelligence boom and away from major digital assets.

Dogecoin fell 9.6% over the past seven days to around $0.076, while HYPE slid 9.9%, marking the largest losses among major tokens. Ether declined 8.4% to roughly $1,581, and XRP dropped 7.8% to $1.06. In contrast, Solana and Tron were more resilient, ending the week roughly flat at about $72 and $0.32, respectively.

Bitcoin proved relatively stable, falling 5.3% to around $60,345 by Saturday after briefly dipping to approximately $58,800 on Friday before rebounding, according to CoinDesk data.

“Bitcoin tested the $58,000 level late Thursday and early Friday, but strong buying quickly pushed it back toward $60,000,” said Alex Kuptsikevich, chief market analyst at FxPro. “The pattern suggests liquidations of leveraged positions during sharp downturns, followed by aggressive buying as prices recover.”

He added that weakening institutional sentiment, combined with investors’ ability to quickly exit crypto positions to shore up balance sheets, could lead to ongoing pressure and intermittent sell-off spikes driven by leveraged traders.

The divergence between crypto and equities remains pronounced. While crypto struggled, Wall Street rotated out of high-flying semiconductor stocks into a broader range of companies tied to steady economic growth.

Although the S&P 500 ended largely unchanged, most of its constituents advanced, and the equal-weighted version of the index reached a new high. Lower oil prices supported sentiment, while chip stocks extended their pullback after a rally that still leaves them on track for a record quarterly performance.

These moves reflect a broader shift in market dynamics. While enthusiasm around AI remains intact, concerns over stretched valuations are emerging, challenging the assumption that such stocks will continue rising without interruption. Capital appears to be rotating within equities rather than exiting risk assets entirely, with crypto failing to capture any of those flows.

Crypto-specific headwinds also persist. Outflows from U.S. spot bitcoin ETFs, a more hawkish Federal Reserve stance, and a strong U.S. dollar have weighed on prices throughout the week. Bitcoin remains near its 200-week moving average, a key long-term level that has historically coincided with extended periods of weakness.