According to Bloomberg, the market frenzy after Trump's election has cooled down in the stock and corporate credit sectors, but in the speculative sector of Wall Street, risk investment enthusiasm is growing. Cryptocurrency and big technology stock-related ETFs are trading actively, driving risk assets to perform strongly against the backdrop of economic prosperity and Trump's promises.
Two leveraged funds associated with MicroStrategy saw inflows of $420 million this week, pushing its stock up 24%. This investment demand pushed up MicroStrategy's price, enabling it to raise more funds, further supporting Bitcoin.
Daily rebalancing of leveraged ETFs, which Nomura Holdings Inc. estimates bought $2.1 billion of U.S. stocks at Thursday’s close, a record high, can exacerbate volatility in underlying assets.
