Cryptocurrencies: “The rally is over”

Confidence in the crypto market has already evaporated again. Bitcoin, Ethereum, and others are struggling. Many took advantage of the temporary price increases to sell.

May 28, 2026. FRANKFURT (Deutsche Börse). The Bitcoin comeback never materialized—at least for now. A key reason: rising bond yields and expectations of higher key interest rates, which make interest-free cryptocurrencies less attractive. Hopes for the new Federal Reserve Chair, Kevin Warsh—long associated with interest rate cuts—are also fading. The result is heavy outflows from crypto products: from the major U.S.-approved Bitcoin spot ETFs, such as those from BlackRock, Fidelity, or Grayscale, but also from local ETNs. “Outflows totaling $1.07 billion ended the six-week streak of inflows,” reports crypto-ETN provider CoinShares, referring to the previous week. “Risk aversion spread globally: Nearly every region saw outflows.”

Bitcoin is trading at $73,000 on Thursday morning, down from a peak of over $81,000 in the first half of May. This means the cryptocurrency has lost 16 percent of its value since the start of the year. Compared to its all-time high of nearly $126,000 in October of last year, the decline is as much as 42 percent. Ethereum and Solana have seen even steeper declines.

Heavy Outflows in May

“Bitcoin reacts strongly to the macroeconomic environment,” notes Dovile Silenskyte of WisdomTree. When investors seek alternative investments due to inflation and political uncertainties, Bitcoin tends to rise. However, it remains vulnerable when real interest rates rise and the U.S. dollar strengthens. “Currently, the macroeconomic environment is slightly supportive, but not supportive enough for a breakthrough.”  

In April, Bitcoin ETNs still recorded inflows, as WisdomTree reports. In May, the picture changed: In the U.S., there were massive outflows in the first three weeks of May.

There is little activity in crypto-ETN trading. At ICF Bank, there is almost no activity at all. The top ten spots on the trading volume list for ETFs, ETCs, and ETNs are occupied by other products. “The first crypto-ETN is coming late—a Solana tracker,” reports Ivo Orlemann. Andreas Schröer of Lang & Schwarz sees trading primarily in second- and third-tier currencies. One example: the 21shares Ondo (CH1396389921). 

No Longer Like the Nasdaq

André Dragosch of Bitwise points out that Bitcoin and U.S. tech stocks—unlike in the past—have recently performed very differently. “We are currently seeing the most extreme valuation gaps we have ever observed,” he explains. Measured by the market-to-realized value ratio (MVRV)—the equivalent of the price-to-book ratio for stocks—Bitcoin remains below its historical average.

The Nasdaq 100 price-to-book ratio, on the other hand, is near its highest level ever measured by Bitwise. “Should the current concentration on U.S. large-cap tech companies dissipate—whether due to disappointing earnings, a closer scrutiny of AI investments, or a return to the long-term valuation average—Bitcoin is likely to benefit,” says Dragosch. 

Not all are losing ground

But not all cryptocurrencies are losing ground: Dragosch mentions Hyperliquid—which, with a 77 percent increase since the start of the year, is the best-performing crypto asset among large-cap tokens. Hyperliquid is evolving from a crypto trading platform into a global “financial super app.” Bitwise offers a Hyperliquid ETN (DE000A4ARTJ5), as do 21shares, CoinShares, VanEck, and Virtune.