This Tuesday's US stock market performance was truly extraordinary — on one side, the S&P 500 confidently hit a new all-time high, while on the other side, crypto-related stocks staged a dramatic show.
The specific situation was as follows: MSTR fell 3.92%, COIN dropped 2.26%, BLSH plummeted 6.26%, GEMI declined 5.54%, and the most outrageous was ETHZ, which crashed by 15.08% in one go! Looking at these numbers, you can see how thoroughly the market is divided.
Why is this happening? Two main reasons are causing the chaos.
**The profit-taking wave before Christmas holiday** is the first. As the long holiday approaches, institutions that made quick gains on highly leveraged crypto concept stocks want to lock in profits. Instead of risking it over the holiday, it's more reassuring to pocket the gains and enjoy the festival. This is called securing profits before the holiday.
**Counter-flow of funds** is the second. Hot money has withdrawn from the high-valuation crypto sector and is rushing into traditional blue-chip stocks. In the stable camp of the S&P 500, investors find resonance. The tug-of-war between the two sides has created this surreal contrast.
So the key question is — is this a sign that the crypto sector is cooling off, or a preparatory move before a big surge? Can your positions still withstand this?
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PoetryOnChain
· 13h ago
Institutional leek harvest season
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BearMarketGardener
· 13h ago
Margin Replenishment is all set.
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MEVHunterNoLoss
· 13h ago
The classic wealth effect transfer
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MissedAirdropBro
· 13h ago
Never regret bottom-fishing and adding to your position
This Tuesday's US stock market performance was truly extraordinary — on one side, the S&P 500 confidently hit a new all-time high, while on the other side, crypto-related stocks staged a dramatic show.
The specific situation was as follows: MSTR fell 3.92%, COIN dropped 2.26%, BLSH plummeted 6.26%, GEMI declined 5.54%, and the most outrageous was ETHZ, which crashed by 15.08% in one go! Looking at these numbers, you can see how thoroughly the market is divided.
Why is this happening? Two main reasons are causing the chaos.
**The profit-taking wave before Christmas holiday** is the first. As the long holiday approaches, institutions that made quick gains on highly leveraged crypto concept stocks want to lock in profits. Instead of risking it over the holiday, it's more reassuring to pocket the gains and enjoy the festival. This is called securing profits before the holiday.
**Counter-flow of funds** is the second. Hot money has withdrawn from the high-valuation crypto sector and is rushing into traditional blue-chip stocks. In the stable camp of the S&P 500, investors find resonance. The tug-of-war between the two sides has created this surreal contrast.
So the key question is — is this a sign that the crypto sector is cooling off, or a preparatory move before a big surge? Can your positions still withstand this?