A shift away from semiconductor stocks helped lift the broader equity market, driving the equal-weight S&P 500 to a record high. Crypto markets, however, lagged behind, with ether dropping 8% on the week and memecoins seeing even steeper declines.

Dogecoin and Hyperliquid’s HYPE led the losses, each falling close to 10% as capital continued rotating into AI-focused equities and away from major cryptocurrencies.

Dogecoin declined 9.6% over seven days to around $0.076, while HYPE dropped 9.9%, marking the steepest losses among large-cap tokens. Ether fell 8.4% to roughly $1,581, and XRP lost 7.8% to $1.06. Meanwhile, Solana and Tron showed relative strength, ending the week mostly unchanged near $72 and $0.32.

Bitcoin was comparatively more stable, down 5.3% to about $60,345 by Saturday after dipping to $58,800 on Friday before recovering, 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, noting that the move reflects liquidation-driven drops followed by aggressive dip buying.

He warned that weakening institutional sentiment and the ability of investors to quickly reduce crypto exposure could keep pressure on the market, with periodic sell-offs driven by leveraged positions.

The divergence between crypto and equities remains clear. While digital assets struggled, Wall Street rotated out of high-performing chip stocks into a broader range of companies tied to steady growth.

Although the S&P 500 finished largely unchanged, most of its components advanced, and the equal-weight index hit a new high. Falling oil prices supported sentiment, while semiconductor stocks extended their pullback after a strong rally that still leaves them on track for a record quarter.

These moves highlight a broader shift in market dynamics. While enthusiasm around AI remains, concerns over elevated valuations are growing, weakening the narrative of uninterrupted gains. Capital is rotating within equities rather than exiting risk assets altogether, with crypto failing to capture those flows.

Crypto-specific headwinds persist, including outflows from U.S. spot bitcoin ETFs, a hawkish Federal Reserve, and a strong dollar. Bitcoin continues to hover near its 200-week moving average, a level historically associated with extended periods of weakness.