Bitcoin and major cryptocurrencies declined 5 to 7 percent over the past week even as global stock indexes climbed to all-time highs and oil prices fell sharply, underscoring a divergence between crypto and traditional markets that analysts attribute to regulatory uncertainty rather than macroeconomic weakness.
Bitcoin dropped 6 percent on the week, trading near $73,000, while ether slid 6.4 percent to around $2,000. Smaller altcoins fared worse: Solana, XRP, and DOGE each lost between 4.9 and 6.7 percent over seven days. Hyperliquid’s HYPE token bucked the trend, gaining 5.8 percent.
The equity rally painted a starkly different picture. The MSCI All Country World Index, the broadest measure of global equities, climbed 0.3 percent to an all-time high. Asian stocks rallied 2 percent to record levels. Brent crude, the key oil benchmark, slipped 0.5 percent and fell more than 18 percent in May, marking its worst month since March 2020.
Geopolitical headwinds eased as well. The U.S. and Iran reached a tentative deal to extend their ceasefire by 60 days and reopen talks on Tehran’s nuclear program, though the agreement still requires President Donald Trump’s signoff. Iran’s Tasnim news agency said the memorandum of understanding had yet to be finalized.
Despite these tailwinds, crypto remained sluggish. Javier Martinez, CEO at sFOX, attributed the stagnation to institutional hesitation. “They’re waiting on regulatory confirmation, not just macro improvement,” Martinez said.
FxPro analysts echoed that sentiment, stating in a note that “the time for a long-term bull market has not yet come.” The firm pointed to technical weakness: Bitcoin has fallen below its 50-day moving average, and the 200-day average is sloping lower.
Swissblock, another analyst firm, said Bitcoin has slipped into a “high-risk zone” amid selling pressure and fading spot Bitcoin ETF demand. Spot Bitcoin ETFs powered much of the 2024 to 2025 rally, and their cooling appetite has left the market vulnerable.
On-chain data reinforced the bearish tone. Short-term holder supply of Bitcoin has dropped 2.2 million BTC since December, a sign that weak-handed investors have already capitulated. The exodus suggests that remaining holders are either long-term believers or trapped positions.
The regulatory limbo extends beyond immediate market dynamics. Institutional investors are awaiting clarity on U.S. crypto market structure and oversight frameworks, but no specific legislative timeline has crystallized. Without a clear near-term catalyst from Washington or other major jurisdictions, crypto remains caught between macro optimism and structural uncertainty.
