The general decline of US stocks and the rise of cryptocurrencies may be a good thing!
The US stock market fell for three consecutive days this week. Yesterday, it set a record for the fourth net inflow of stock ETF funds in history, with a single-day inflow of 45 billion. According to this situation, the funds outflow from the technology sector did not all flow into small-cap stocks, but a lot of funds flowed into stock ETFs.
In fact, this situation is not a bad thing for the crypto market. We can see the initial effect at present.
For the future trend of the US stock market, whether it is the interest rate cut or Trump’s economic strategy, some US stock traders believe that the future economy is not so optimistic. Although large-cap stocks are frequently sold and funds have also flowed into small-cap stocks, there is a clear loss of funds during the turnover process.
Tonight, #BTC’s rise against the trend is more intriguing, because compared with the uncertainty of the future of the US stock market, the crypto market has several clear positive factors recently, Trump’s Bitcoin conference next week, and Ethereum’s ETF next Tuesday. The expectation of interest rate cuts is not so important, but it is also a positive factor. Under the superposition of multiple positive factors, the current prospects of the crypto market seem to be clearer than the US stock market. It is normal for some funds to flow back to cryptocurrencies.
Of course, this is just a preliminary guess, and it still requires relevant data to be serious. At the same time, it depends on whether the volatile decline of US stocks will continue next week, and whether the crypto market will continue to rise against the trend.
However, next week will still be "good things frequently"! Look forward to it
