S&P 500 Rides High — Cryptos Slip Amid Cooling ETF Inflows
By John Nada·May 31, 2026·4 min read
Despite the S&P 500's winning streak, Bitcoin and Ethereum fell, hindered by cooling ETF inflows.
The S&P 500's longest winning streak since 2023 couldn't lift crypto from its slump.
While traditional markets celebrated a robust rally, cryptocurrencies faced a contrasting fate. The S&P 500 posted its ninth straight weekly gain, signaling confidence among equity investors. This matched a historic run seen rarely over the past four decades, driving the index up nearly 20% from its March lows, according to CoinDesk. But Bitcoin and Ethereum both closed the week significantly lower.
The equity market's buoyancy was mirrored in the traditional commodities market, with Brent crude stabilizing around $92 per barrel. This stability came in light of potential developments between the U.S. and Iran, which offered a glimmer of macroeconomic stability. President Donald Trump expressed readiness to finalize a U.S.-Iran agreement, although he reiterated demands that Iran is unlikely to meet, including abandoning its nuclear program. These geopolitical developments contributed to a positive backdrop for stocks and commodities, yet they failed to uplift the crypto sector.
In the world of cryptocurrencies, the mood was distinctly less optimistic. Bitcoin and Ethereum saw respective declines of 2.6% and 2.5%, closing the week at $73,445 and $2,011, CoinDesk reported. This downturn was attributed to the cooling of spot Bitcoin ETF inflows, which dampened what could have been positive spillover from the stock rally. The sluggishness in the crypto market was further evidenced by the performance of other major cryptocurrencies. Solana (SOL) and TRON (TRX) mirrored this sentiment, with TRON suffering a 5.6% drop, marking it as the worst performer among the top ten crypto assets.
One notable exception in the crypto space was Hyperliquid's HYPE token, which defied the trend by surging 19.4%. This significant gain highlighted that investor sentiment can still favor niche opportunities, even amid broader market downturns. The rally in HYPE was potentially catalyzed by Intercontinental Exchange CEO Jeffrey Sprecher’s remarks at a Bernstein conference, where he compared the platform to NASDAQ and praised its potential.
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Examining the dynamics of crypto funds, XRP ETFs stood out during this period. They attracted $11.88 million in net inflows on May 29, a stark contrast to Bitcoin and Ethereum's $2 billion combined losses since May 20. Ripple’s strategic maneuvers continue to pique investor interest, evidenced by XRP funds swelling to a total of $1.12 billion in assets. This interest in XRP may hint at a strategic pivot among investors, seeking diversification amid the fluctuating performance of Bitcoin and Ethereum ETFs.
The geopolitical stage also played its part, with President Trump's engagement in negotiations with Iran potentially affecting market sentiments. However, the red lines he restated on Friday sit well beyond what Iran has indicated it would accept publicly. As such, the macro rally remains precarious, susceptible to being reversed by negative headlines.
The broader question remains: will crypto continue to forge its own path, untethered from traditional market rallies, or will it align with them in future upticks? The separate trajectory of cryptocurrencies highlights their unique market drivers, which sometimes defy even the strongest macro narratives. This divergence emphasizes the distinct factors influencing the crypto market, from regulatory developments to technological innovations and investor sentiment shifts.
Despite the broader optimism in traditional markets, the crypto sector's performance underscores the complexities and challenges it faces. With cooling ETF inflows and geopolitical uncertainties, the crypto market's path remains unpredictable. This period serves as a reminder of the volatile nature of cryptocurrencies and the myriad of factors that can impact their performance.
As the macroeconomic and geopolitical narratives continue to evolve, market participants and investors will be closely watching for any signs of alignment between crypto and traditional markets. Until such alignment occurs, the crypto market may continue to navigate its own course, shaped by its distinct set of influences.