The S&P and Nasdaq have jointly reached a historic high of 249 years, while BTC has not broken new highs. It was previously mentioned that replacing BTC with Google or GGLL (double long Google) could outperform by 10-20%, but the risk resistance of the portfolio is stronger.
In the future, altcoins will not create significant market volatility; this is a notable characteristic. Market capitalization is largely driven by capital manipulation. By observing the development of the U.S. stock market, one can anticipate how the future market will behave. Over the long term, small-cap stocks in the Russell have consistently underperformed the S&P, characterized by high volatility, low price-to-earnings ratios, and low growth rates, resulting in a poor risk-reward ratio.
Next, it will be difficult for venture capitalists to invest in major projects. The innovative and capital operation models that have emerged in this cycle, such as SOL and Sui, can be considered the grown-up version of the Nasdaq; they exhibit higher volatility but possess strong long-term growth potential. Additionally, DeFi projects with clear profitability, like UNI, AAVE, and CRV, are more akin to the S&P in terms of stability and higher long-term returns.
