Major cryptocurrencies decline as artificial intelligence stock rotation boosts stock market
June 28, 2026
Major cryptocurrencies experienced a downturn throughout the week as investor funds shifted from crypto into AI-related equities. Leading the losses were Dogecoin and Hyperliquid’s HYPE token, each dropping around 9-10% according to CoinDesk data. Other notable declines included Ether, down roughly 8%, XRP falling 7-8.5%, and Bitcoin dipping 4-5% to trade within the $59,000-61,000 range after briefly hitting lows near $58,000. Solana showed more resilience, while Tron remained relatively stable.
Gabe Selby, the head of research at CF Benchmarks, explained that a significant portion of new investor capital had flowed into AI investments, leaving the crypto market with a smaller portion of overall risk appetite. Selby characterized the movement as a “broad market cooldown” rather than an inherent issue within the crypto sphere. He noted historically significant levels for Bitcoin, with the $50,000-$60,000 range historically attracting buyers, $55,000 as a key support level, and highlighted $61,000-$62,000 as a critical level for bulls to reclaim. In light of these fluctuations, he advised maintaining sensible position sizes.
The market faced an external shock on Friday as Apple’s shares dropped over 6% following reports of price hikes on Macs, iPads, and home devices. This development raised concerns about increased component costs dampening the memory-chip rally that supported the AI sector. South Korea’s Kospi experienced up to a 9% decline, leading to a trading halt, while chipmakers SK Hynix and Samsung each fell over 8%. Nasdaq 100 futures also saw a 1.5% decrease. The pressure from the tech sector spilled over into the crypto market, with significant holders distributing their assets in a market where risk appetite was on the decline, magnifying the impact of the downturn.
This scenario highlighted a recurring pattern where cross-asset rotation events, particularly those connected to AI equity momentum and major macro triggers, affected altcoins and memecoins more severely than Bitcoin due to their shallower liquidity and higher retail leverage. Risk models assuming stable correlations between AI equities and crypto may underestimate the risk exposure during such sector rotations. Key indicators to monitor moving forward include U.S. spot bitcoin ETF flows, funding rates on major exchanges, and macro signals from the Federal Reserve and the dollar index.
In summary, the market saw significant fluctuations as capital moved from crypto to AI-related equities, leading to price drops across major cryptocurrencies. Despite the challenges, Bitcoin demonstrated resilience within historically significant price ranges, while external factors such as the tech selloff added to the overall market pressure. Risk and quant teams are advised to monitor cross-asset ETF flows, Federal Reserve signals, and dollar strength to navigate potential future market developments.
