#binance #hype #zec #near
03/06/26 03:01 UTC-04

Crypto Market Faces “Self-Reinforcing Capital Outflow Cycle” — Santiment

A “self-reinforcing cycle” of capital outflows is forming in the crypto market, according to analysts at Santiment. Investors are increasingly favoring equities, which have recently outperformed both gold and Bitcoin.

From May 6 to June 1, the S&P 500 rose 4%, while Bitcoin fell 13% and gold declined 5%. This has led to a noticeable rotation of capital into traditional equities.

U.S. stocks are also benefiting from policies under President Donald Trump, which are seen as supportive of large corporations. Santiment analysts say this is boosting not only the S&P 500 but global equities as a whole.

Analysts noted:

“The performance gap can create a self-reinforcing cycle: when traders see equities consistently delivering higher returns with lower volatility, capital begins flowing out of crypto.”

They add that this trend becomes especially visible when Bitcoin fails to rally despite long-term positive catalysts such as ETF adoption and institutional participation.

However, Santiment believes this trend may not persist long-term. The firm highlights increasing social media commentary claiming equities are outperforming crypto, which they interpret as excessive bullishness on stocks and excessive pessimism toward digital assets—conditions that often precede contrarian market moves.

Previously, Wintermute stated that ongoing outflows from spot Bitcoin ETFs remain a key threat to the flagship cryptocurrency market.

See also: "Standard Chartered: “Today May Be the Day Ethereum Starts Outperforming Bitcoin”"

#crypto currencies #Gold #Investment #Shares

Editor: Yulia Krasnaya
Comments

Similar

15/01/26 04:10 UTC-04

U.S. stocks fall as the crypto sector and precious metals rise

On Wednesday, January 14, U.S. stocks moved lower, with all major indices posting losses. Equities failed to keep pace with gains in precious metals—gold and silver continued to rise—while the crypto market added 3.66% over the past 24 hours to reach $3.29 trillion.

02/04/26 21:58 UTC-04

Trump's "Stone Age" rhetoric leads to a $440 million drop in the cryptocurrency market, with Bitcoin falling below $66,000

On Thursday, Wall Street mostly closed lower as President Donald Trump's national address, in which he promised to deliver an "extremely strong blow" to Iran, dashed the brief optimism from Wednesday and led to a sharp rise in oil prices. Oil reached $111 per barrel, as Trump's speech disrupted the rally tied to de-escalation of the conflict on April 1.being a critical support level, and breaking it could trigger a chain reaction of liquidations.

26/03/26 09:08 UTC-04

Institutions name cryptocurrencies they plan to buy

Institutional investors continue to believe in the growth potential of cryptocurrencies and are therefore willing to invest in them. The top two positions among the five most preferred cryptocurrencies for investment are, unsurprisingly, Bitcoin and Ethereum.