Dogecoin and HYPE Top Weekly Crypto Losers as AI Stock Frenzy Draws Capital Away
The past week delivered a tough stretch for cryptocurrency markets, with Dogecoin and Hyperliquid's native token HYPE emerging as the biggest casualties among major digital assets. Both tokens shed roughly 10% of their value as investors continued redirecting capital toward equities tied to the artificial intelligence revolution.
Dogecoin declined 9.6% over the seven-day period, settling near $0.076, while HYPE dropped 9.9% — the sharpest slide among top-tier tokens. Ether was not far behind, tumbling 8.4% to approximately $1,581, and XRP retreated 7.8% to $1.06. By contrast, Solana and Tron demonstrated relative resilience, finishing the week essentially flat at around $72 and $0.32 respectively.
Bitcoin held up better than most of its peers, though it still recorded a 5.3% weekly loss, trading near $60,345 on Saturday. The flagship cryptocurrency touched a low of roughly $58,800 on Friday before clawing back into the $60,000 range. According to Alex Kuptsikevich, chief market analyst at FxPro, this price behavior reflects a familiar pattern. "Bitcoin approached $58K at its lows late Thursday and early Friday, but in both cases, aggressive buying quickly pushed it back into the $60K range," he noted. "This pattern resembles margin position liquidations during downtrend spikes, followed by strong buying on pending orders during the recovery."
Kuptsikevich also cautioned that institutional sentiment is deteriorating, warning investors to brace for continued selling pressure. "Given the ability of institutional players to quickly rotate out of crypto to stabilize balance sheets, periodic sell-off spikes driven by leveraged traders should be expected," he added.
The broader market picture tells a contrasting story. U.S. equities experienced a notable rotation away from semiconductor giants and into a wider basket of growth-oriented companies. While the headline S&P 500 closed largely unchanged, the equal-weighted version of the index — which neutralizes the outsized influence of mega-cap stocks — hit a fresh all-time high. Declining oil prices supported market sentiment, even as chipmaker shares pulled back after an extraordinary run that still keeps them on pace for their strongest quarter on record.
The AI trade is showing early signs of maturity. Investors are beginning to question stretched valuations in semiconductor stocks, and while confidence in artificial intelligence's long-term potential remains intact, the notion that these stocks can only go up is losing traction. Crucially, the money rotating out of chips is flowing into broader equity markets rather than into crypto.
Several headwinds specific to digital assets have compounded the pressure. Consistent outflows from U.S. spot Bitcoin ETFs, a hawkish Federal Reserve stance, and a strengthening dollar have all weighed on prices throughout the week. Adding to the concern, Bitcoin is currently hovering near its 200-week moving average — a technical level that has historically signaled prolonged periods of weakness.
Risk appetite across financial markets has not evaporated entirely; it has simply become more selective. For the moment, that selectivity is working against crypto, with investor enthusiasm concentrating in AI-linked equities rather than digital tokens. Whether this rotation proves temporary or marks a more sustained shift in capital flows remains the key question heading into the weeks ahead.
