Traditional capital fired the first shot, and the emotional recovery started from the concept stocks.
The U.S. stock market remains stable, and the first to move is the crypto concept stocks. Before every major cryptocurrency market trend, Wall Street always lets out a hint first.
Although these stocks do not directly buy Bitcoin, they are closely related to the cryptocurrency market, such as mining, computing power, blockchain technology, etc. Their rise often indicates that traditional capital is starting to lay out plans in advance.
When the crypto market enters a volatile period, it is always traditional capital that first senses the shift. They won't immediately go all-in on BTC or ETH but will first test the waters through 'crypto concept stocks.'
Because these stocks have good liquidity in the U.S. stock market and various risk control methods, they can capture the expectations of cryptocurrencies while being safer than directly trading cryptocurrencies.
That is to say: this wave of increase may be that some smart money has already begun to bet on the future market of cryptocurrencies.
Don't forget, before Bitcoin started its bull market in 2020, stocks like MicroStrategy, Square, and Coinbase—those with a bit of 'crypto gene'—rose first. At that time, many people didn't pay attention, but looking back, that was the 'first thunder' of the bull market.
So this signal cannot be ignored. Although it cannot be said that an explosion is imminent, it may indicate that institutions' attitude towards the cryptocurrency market is shifting from 'wait-and-see' to 'testing the waters.'
So the question arises:
Do you think the rise of these crypto concept stocks is an emotional recovery? Or is it a prelude to a new round of market trends?
Is the 'smart money' back, or is it another 'false move'?
Feel free to leave your thoughts in the comments section, and let's dissect this situation together. Hit follow to stay updated on the second wave of data.
