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The markets during late May 2025 displayed unexpected spikes and significant declines along with puzzling economic patterns. Investors and market watchers have experienced an exceptionally dynamic period during this timeframe. The total value of cryptocurrency markets grew by 6.9% reaching US$3.55 trillion in the week ending late May as reported by Binance research while traditional markets experienced mixed results.
BTC and gold
The top performers for the week were Bitcoin which gained 6.3% and gold which increased by 4.9%. Bitcoin’s recent surge occurred during a period of increased ETF investment and a slightly weaker dollar while gold benefited from safe-haven demand and possibly additional concerns over the U.S. debt ceiling.
The S&P 500 and the powerful U.S. Dollar Index (DXY) experienced declines of –0.9% and –1.4%, respectively while U.S. 10-Year Treasuries and Ethereum (ETH) registered slight decreases.
Year-to-date: Gold leaves crypto in the dust
Gold secured the highest return in 2025 with a 27.1% year-to-date gain which surpassed Bitcoin’s respectable 17.8% YTD performance. Ethereum (ETH) has endured a terrible year with a significant decline of –22.2%. The S&P 500 shows minimal movement and remains slightly negative while the DXY index has decreased substantially by 8.3%.
Ethereum’s wild week
Ethereum experienced its greatest weekly advance since 2021 when it surged over 43% in seven days. That’s not just impressive; it’s legendary. ETH reached its previous weekly peak during the 2021 market frenzy when smart contracts became a common topic of conversation even at the barber shop. ETH’s 2025 downturn reached a low of –55% YTD by mid-April before recovering to approximately –20% by late May.
Bitcoin ETFs
Bitcoin Spot ETF inflows reached $43 billion by late May as they skyrocketed. Crypto assets have moved beyond their status as the oddball family member to become regular members of institutional investors’ portfolios.
Multi-asset performance: Equities, FX, commodities, bonds, and volatility
If you thought crypto was volatile, check out the VIX (the “fear gauge” for equities): The VIX saw a 15% rise during the past week and increased almost 70% from the same period last year. The MOVE Index which measures bond market volatility shows an increase yet remains less alarming in comparison.
The S&P 500 and NYFANG+ both experienced moderate weekly declines yet delivered respectable annual returns with NYFANG+ achieving an impressive 28.7%. Gold? Still dazzling, up nearly 38% year-over-year.
The bond market remains stagnant since the U.S. 10-Year Treasury bond values have dropped across all maturities. WTI crude oil prices experienced a continuous decline reaching a 21% drop compared to last year.
Correlations: BTC and ETH
The 2-month correlation matrix shows BTC and ETH moving closely together with a correlation of 0.84. The stocks display moderate correlations with the S&P 500 while gold maintains its independent rhythm which often leads it to move away from the dollar index (DXY).
Credit downgrades
Multiple sectors experienced challenges during this week. Moody’s lowered the U.S. sovereign credit rating to Aa1, citing rising debt and interest burdens. The rating actions follow substantial credit rating adjustments by S&P in 2011 and Fitch in 2023.
Anytime these ratings downgrades occurred they created disturbances throughout the financial markets. The 2011 S&P downgrade resulted in a 71% fall for BTC over 90 days while gold experienced significant gains. In the first three days BTC rose nearly 3%, gold increased by 3.3% but the S&P and U.S. 10-Year both showed declines. We’re experiencing a familiar situation yet this time the crypto market plays a bigger role.
What’s next? Key events to watch
The upcoming week features numerous potential catalysts beyond just price charts analysis. The upcoming U.S. FOMC meeting minutes release (which always makes markets tense) along with major crypto events like Bitcoin 2025 and ETHPrague promise to ignite market volatility.
Incorporating macroeconomic indicators such as U.S. services PMI together with durable goods orders and Japanese inflation and employment statistics leads to ongoing market volatility and potential investment opportunities.
Final thoughts
The continued strength of Bitcoin and the lustrous appeal of gold stand out but Ethereum’s difficulties show that major market players can face setbacks.
The essential advice for investors involves maintaining knowledge about market trends and spreading their investments across multiple assets. Crypto enthusiasts and traditional investors alike should monitor both market segments because each holds valuable insights. Stay ahead of the curve. Get exclusive market insights and trade on Binance.
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