Bitcoin is stealing the spotlight again
The price of BTC is now within $1,000 of its all-time high of $109,114, set in January. While Bitcoin continues to attract inflows and dominate the market narrative, altcoins are lagging behind. Institutional interest is heavily skewed toward BTC, with the latest ETF inflows and performance divergence further reinforcing this trend.
Institutional money is still flowing in
According to Farside, Bitcoin ETFs saw $1.7 billion in net inflows over the last 5 business days, bringing the total to $42.7 billion since launch. The total AUM across Bitcoin ETFs now stands at a massive $128 billion. BlackRock’s IBIT alone ranks in the top 30 largest ETFs globally by market cap — a major milestone for the crypto industry.
XRP futures launch, but price drops
The CME launched XRP futures on Monday, with 150 contracts traded on day one, representing 7.5 million XRP (around $19M). This was a stronger debut than Solana futures but still significantly lower than Bitcoin’s first-day futures volume back in 2017. Despite this, XRP fell nearly 8%, signaling limited short-term impact on price — and possibly less enthusiasm from institutional players compared to Bitcoin.
Altcoins are firmly in the red
Altcoins continue to underperform. Solana (SOL) is down nearly 7% and briefly dipped below $160 on Monday. Cardano (ADA) and Chainlink (LINK) are each down around 8%, while Avalanche (AVAX) has had the worst performance among the top 20, falling nearly 14% to $22.75.
BTC outperforms both crypto and traditional markets
Bitcoin is the only top crypto asset closely tracking the performance of US equities. The S&P 500 is up 0.81% since last Wednesday. Meanwhile, altcoins continue to lag — highlighting the growing divergence within the crypto space.
US credit downgrade shakes traditional markets
Moody’s downgraded US debt from AAA to AA1 last Friday, citing unsustainable debt levels and a lack of credible fiscal reform. The downgrade triggered a 1.4% correction in equity markets over 10 hours, which Bitcoin followed with a slight delay — temporarily reinforcing its digital gold narrative.
Bond yields rise as investors get nervous
The 30-year US government bond yield moved above 5% — its highest level since 2023. Rising borrowing costs, combined with a $3.8 trillion tax cut bill under debate, are increasing concern over the long-term sustainability of US fiscal policy. A recent NYT article warned that without major changes, the debt-to-GDP ratio could break WWII records before 2035 — and possibly much sooner with current proposals.
Uncertainty weighs on foreign investment
Although tariffs are intended to bring industrial investment back to the US, policy unpredictability is causing hesitation. Swiss pharma giant Roche, which had pledged $50M to expand in the US, is now reconsidering after a recent Executive Order aimed at cutting drug prices.
M&A activity is booming in crypto
Despite macro uncertainty, crypto continues to see record M&A activity. Architect Partners reported 62 deals in Q1 alone. Coinbase’s $2.9B acquisition of Deribit was the biggest yet. Ripple acquired prime broker Hidden Road for $1.25B, while Robinhood expanded into Canada by acquiring WonderFi for $179M. Meanwhile, Circle is rumored to be exploring both an IPO and a sale — with Ripple offering upwards of $4B.
Coinbase enters the S&P 500, but not without turbulence
Last week, Coinbase became the first crypto company added to the S&P 500. Its stock (COIN) jumped 16.26% on the news. However, just two days later, the company disclosed a data breach, with estimated costs ranging from $180M to $400M. The result was a sharp 6.87% correction in COIN’s price.
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