Tag Archives: institutional

The great rotation: How AI stocks are stealing billions from crypto

The great rotation: How AI stocks are stealing billions from crypto

Financial markets constantly test the conviction of participants who refuse to accept mainstream narratives. The global financial infrastructure currently experiences a massive rotation of capital. Traditional equity markets retreat from record highs while digital assets absorb shifting liquidity.

We witness a complex interplay between geopolitical relief, central bank policies, and institutional risk appetite. Investors often mistake strategic reallocation for systemic collapse. The data reveals a nuanced reality where capital simply migrates toward higher growth vectors within the broader technology and digital asset ecosystem. The system rewards those who look beyond daily volatility to see the underlying technological progress.

Yesterday, I covered how Bitcoin demonstrates remarkable resilience amid this macroeconomic turbulence. Over the past 24 hours, the leading digital asset rebounded from a low of US$63,197 to reach an intraday high of US$65,555. This price action maintains its market capitalisation securely above the US$1.3 trillion threshold. Trading activity remains incredibly robust, generating approximately US$27 billion in volume. Despite this underlying strength, the Crypto Fear and Greed Index registers a score of 20, signalling extreme fear. This metric highlights a prevailing bearish undercurrent that contradicts the short-term price resilience.

Technical analysts correctly emphasise that key macro support holds firm between US$53,000 and US$54,000. A sustained bullish continuation requires breaking above the US$74,000 psychological barrier. Institutional prediction platforms reflect this consolidation phase. Traders on Robinhood and Polymarket favour a 28 per cent to 43 per cent probability that Bitcoin will resolve the current trading session within the US$64,000 to US$66,000 range, indicating widespread market uncertainty among retail participants and institutional observers alike.

Mainstream financial media focuses heavily on the recent withdrawal of institutional capital from United States spot Bitcoin exchange-traded funds. These products logged their largest weekly outflow of 2026, totalling roughly US$1.44 billion. This event marks the worst week for flows this year and extends a 6-week stretch of net outflows totalling approximately US$5.9 billion. Galaxy Research data highlights a record US$6.35 billion of net outflows over a rolling 30-day window.

We must contextualise these numbers within the broader timeline. Cumulative net inflows since January 2024 remain around US$50 billion. Exchange-traded fund assets still account for less than 10 per cent of the total Bitcoin market capitalisation. The selling pressure has slowed, shrinking from roughly US$1.7 billion at the start of June to around US$300 million recently. Capital rotates into artificial intelligence equities and upcoming technology initial public offerings.

Simultaneously, altcoin exchange-traded funds quietly absorb this migrating liquidity. XRP and Solana funds attract over US$200 million in inflows, proving that institutions selectively shift risk rather than exiting the digital asset space entirely.

This rotation manifests clearly in traditional equity markets, where Wall Street stocks retreat from record highs. Megacap technology giants lead the losses, offsetting optimism from retreating crude oil prices. The Nasdaq dropped 351.33 points, falling 1.32 per cent to close at 26,166.60. The S&P 500 declined 0.37 per cent to 7,472.79. Conversely, the Dow Jones Industrial Average gained 0.29 per cent to close at 51,712.71. The technology sector faces specific headwinds.

SpaceX shares plunged 16.4 per cent, marking its biggest single-day drop, after the company announced plans to sell investment-grade bonds to fund massive artificial intelligence ambitions. Alphabet sank five per cent amid concerns about artificial intelligence talent defections to competitors such as Anthropic. Amazon fell 4.8 per cent, and Microsoft lost three per cent.

These movements illustrate the intense competition for capital within the technology sector. Investors aggressively reprice companies based on their execution of artificial intelligence and capital allocation strategies. The market rewards innovation while punishing stagnation, thereby accelerating the broader transition toward automated and intelligent economic models across all public exchanges and private markets.

Macroeconomic factors and geopolitical developments heavily influence these market dynamics. Easing international tensions restores immediate risk appetite for digital assets and traditional equities alike. Mediators recently announced that the United States and Iran agreed on a roadmap toward a final peace deal within 60 days. This diplomatic progress reduces the geopolitical risk premium, causing United States West Texas Intermediate and Brent crude prices to retreat significantly. Monetary policy creates a counterweight.

United States inflation recently reaccelerated, prompting the Federal Reserve to signal a tougher path on interest rates. Treasury yields respond accordingly. The United States two-year note climbed to 4.23 per cent, reaching its highest level since February 2025. This yield curve movement reflects continued market anticipation of Federal Reserve rate adjustments.

The hawkish tone limits aggressive upward momentum across risk assets, keeping institutional demand in a cautious phase. Asian markets track these Wall Street movements closely. Japan’s Nikkei and the Kospi previously pushed to fresh records, but traders now watch the session with caution amid regional technology profit-taking, shifting global sentiment, and evolving cross-border capital flows.

We must view these market fluctuations as a natural maturation process rather than a failure of the underlying technology or a sign of impending doom. The current outflow from Bitcoin products coincides perfectly with massive capital deployment into artificial intelligence infrastructure. Institutional investors simply optimise their portfolios to capture growth across both vectors simultaneously.

The stabilisation of weekly outflows strongly suggests that the selling wave has finally exhausted itself. A return to net-positive flows will be a powerful upside catalyst. Public markets will inevitably regain popularity among entrepreneurs and provide broader access to these transformative technologies. Those who understand the structural shifts will navigate this transition successfully.

 

 

Source: https://e27.co/the-great-rotation-how-ai-stocks-are-stealing-billions-from-crypto-20260623/

 

 

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Why institutional money is buying crypto while geopolitical risks mount

Why institutional money is buying crypto while geopolitical risks mount

Bitcoin ETFs pulled in US$272.59M in net flows while Ethereum products added US$79.25M, creating a steady bid that absorbs supply even as retail participation remains muted. This institutional backbone matters because it changes the market’s texture. Instead of volatile swings driven by sentiment alone, we now see structural buying that cushions dips and supports grinds higher.

The data confirms this pattern, showing that large wallets continue to accumulate, including one notable purchase of 35,000 ETH worth US$80M. When whales and institutions align on the buy side, the path of least resistance tilts upward, provided macro conditions do not suddenly shift.

Regulatory clarity is adding fuel to this constructive setup. SEC Chair Paul Atkins recently outlined a framework that categorises tokens into five distinct buckets, separating digital commodities, collectibles, tools, and payment tokens from those that qualify as securities.

This approach, paired with a separation doctrine that allows tokens to shed their securities status once the issuer’s obligations end, gives projects a clearer compliance roadmap. The proposed innovation exemption creates a caged environment in which qualified firms can issue and trade tokenised securities on-chain with lighter requirements, while longer-term rules take shape.

For the first time, tokenised equities, bonds, and real-world assets have a defined path to trade on public or permissioned blockchains in the United States, rather than migrate offshore. This matters because it reduces regulatory uncertainty, one of the largest overhangs on crypto valuations, and invites traditional capital to engage with on-chain markets under familiar legal guardrails.

Crypto does not trade in isolation. The market currently shows an 83 per cent correlation with the S&P 500, reflecting a shared sensitivity to interest rate expectations and liquidity conditions. Equities retreated recently as geopolitical tensions flared around the April 22, 2026, ceasefire deadline between the United States and Iran. The Dow Jones fell 292.96 points to close at 49,149.60, the S&P 500 dropped 45.09 points to 7,064.05, and the Nasdaq Composite lost 144.43 points to finish at 24,259.96.

Oil prices surged above US$90 per barrel after reports that Iran’s Revolutionary Guard re-closed the Strait of Hormuz, while gold tumbled 3.1 per cent following news of a ceasefire extension. These moves ripple through crypto because institutional portfolios rebalance across asset classes. When macro uncertainty rises, even crypto’s structural buyers may pause, testing the resilience of the current uptrend.

From a technical perspective, the market sits at an inflection point. The US$2.61T level represents the recent swing high and a key resistance zone. A decisive break above that mark, especially if accompanied by continued ETF inflows, would signal strong momentum and open the door to further gains.

On the downside, the US$2.48T level, corresponding to the 38.2 per cent Fibonacci retracement, acts as critical support. A close below that threshold would suggest the rally is losing steam and could trigger a deeper pullback. Given the current correlation with equities, crypto traders must monitor both ETF flow reports and macroeconomic data releases, including the US EIA Petroleum Status Report and the 20-year bond auction, for clues on near-term direction.

I see a cautiously bullish setup with clear dependencies. The institutional bid via ETFs provides a solid floor, and the emerging regulatory framework reduces one of the largest uncertainties plaguing the sector. The tight link to traditional markets means crypto remains exposed to shifts in rate expectations, geopolitical shocks, and equity volatility.

The innovation exemption, if implemented with practical flexibility, could unlock a new wave of tokenisation activity, bringing real-world assets on-chain and deepening liquidity. But execution matters. If the final rules prove too restrictive, activity may continue migrating to more permissive jurisdictions.

For now, the confluence of steady ETF demand, clearer regulatory pathways, and strategic accumulation by large holders creates a supportive environment. The question is whether this foundation can withstand macro headwinds as the market tests the US$2.61T resistance. If ETF inflows persist and equities stabilise, the path toward higher valuations remains open. If not, the US$2.48T support will be the line in the sand that determines whether this rally extends or fades.

Investors should also monitor the confirmation hearing for Fed Chair nominee Kevin Warsh, as monetary policy expectations continue to shape risk appetite across asset classes. The market currently prices in a high probability of a rate cut by December 2026, though persistent energy-driven inflation may complicate this path.

Singapore’s March CPI data for general households, released today, adds another layer of global macro context. These fixed income and inflation signals feed directly into the liquidity narrative that underpins both equity and crypto valuations. When yields rise, as the 10-year Treasury note did to approximately 4.30 per cent on April 21, growth-sensitive assets often face pressure. Crypto’s 83 per cent correlation with the S&P 500 means it absorbs these crosscurrents quickly.

The regulatory framework’s 5-bucket taxonomy deserves closer attention because it draws a bright line between utility-focused tokens and security-like instruments. Most layer 1 protocols, DeFi projects, and payment tokens now have a clearer path to operate without triggering securities registration, provided they meet the stated criteria.

At the same time, the SEC is building a regulated home for tokenised stocks and bonds, which could attract traditional finance players who previously stayed on the sidelines. This dual-track approach recognises that crypto is not monolithic. Some tokens function as commodities, others like software tools, and a subset behaves like equity or debt. By sorting them accordingly, policymakers reduce the blanket uncertainty that has long suppressed institutional participation.

Whale accumulation patterns reinforce the constructive technical setup. The purchase of 35,000 ETH worth US$80M signals confidence among sophisticated holders who often move ahead of broader trends. When these actors add exposure during consolidation phases, they frequently anticipate a breakout.

Combined with daily ETF inflows of US$272.59M for Bitcoin and US$79.25M for Ethereum, the market enjoys a two-layered bid: one from regulated investment vehicles and another from private large-scale buyers. This dynamic does not guarantee uninterrupted gains, but it does raise the threshold for a meaningful correction. Sellers must overcome both institutional and whale demand to push prices lower, a task that becomes harder if macro conditions remain supportive.

 

 

Source: https://e27.co/why-institutional-money-is-buying-crypto-while-geopolitical-risks-mount-20260422/

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

The US$76,000 question- Can institutional momentum sustain the current market breakout?The US$76,000 question- Can institutional momentum sustain the current market breakout?The US$76,000 question- Can institutional momentum sustain the current market breakout?

The US$76,000 question- Can institutional momentum sustain the current market breakout?The US$76,000 question- Can institutional momentum sustain the current market breakout?The US$76,000 question- Can institutional momentum sustain the current market breakout?

Bitcoin and traditional equity markets moved in a tight, synchronised dance fuelled by a sudden thaw in geopolitical tensions. Bitcoin climbed 0.86 per cent to reach US$74,813.22, almost perfectly mirroring the 0.88 per cent gain across the broader cryptocurrency sector.

This movement appears deeply tethered to the S&P 500, with an 86 per cent correlation, suggesting that the digital asset is currently trading as a high-beta proxy for global risk appetite. Investors are clearly looking past previous volatility, focusing instead on a massive return of institutional capital and the possibility of a peaceful resolution to the conflict in the Middle East.

The primary driver of this price surge is a dramatic reversal in institutional behaviour toward spot Bitcoin exchange-traded funds. After a period of cooling interest, these funds recorded net inflows of US$411.5 million on April 15. BlackRock led this charge through its IBIT fund, which alone accounted for roughly US$214 million in new capital. This represents the second-largest daily inflow for April and serves as a powerful signal that institutional smart money is stepping back in to provide a robust floor for the market.

When large-scale buyers commit hundreds of millions of dollars in a single session, it creates a supply-demand imbalance that naturally forces the price upward, reinforcing the narrative that Bitcoin is no longer just a retail playground but a core component of modern portfolio management.

This resurgence in digital assets cannot be viewed in isolation from the record-breaking performance of the US stock market. On April 16, 2026, the S&P 500 gained 0.80 per cent to close at a historic peak of 7,022.95, while the Nasdaq Composite jumped 1.59 per cent to end at 24,016.02. This marked an impressive 11-session winning streak for tech-heavy indices.

Market sentiment was lifted by renewed optimism surrounding peace talks to resolve the war in Iran. As the fear of a broader regional escalation eased, the CBOE Volatility Index fell 1.03 per cent to 18.17. This decline in market fear directly benefited Bitcoin, as traders felt more comfortable moving back into riskier assets that had been suppressed by the threat of geopolitical instability.

Technically, Bitcoin’s price action appears increasingly constructive as it holds above critical support levels. The asset successfully held above the 50 per cent Fibonacci retracement level at US$74,479 and its seven-day simple moving average of US$74,586. These levels are essential psychological and mathematical markers for traders.

Staying above them confirms a bullish structure and prevents the cascading sell-offs seen at the height of the conflict earlier this year. As long as Bitcoin remains above this US$74,479 threshold, the path of least resistance appears to be toward the recent swing high of US$75,409. If that barrier is breached, the market will likely set its sights on the US$76,559 extension level.

While the headline numbers on Wall Street and in the crypto markets suggest a period of euphoria, the underlying economic data present a more nuanced and complicated reality. According to the Federal Reserve Beige Book, the US economy is growing at only a slight-to-modest pace. The report highlights that the war in Iran remains a major source of uncertainty, leading many businesses to adopt a wait-and-see posture regarding hiring and capital investment.

Furthermore, preliminary April data show that consumer sentiment has plunged to a historical low of 47.6 per cent. This disconnect between record-high stock prices and record-low consumer confidence is largely driven by persistent inflation concerns, even as energy prices, such as West Texas Intermediate crude oil, cooled slightly to settle at US$90.69.

The corporate sector reflects this divide between growth and geopolitical pressure. On one hand, tech giants and financial institutions are showing remarkable resilience. Broadcom surged more than 4.19 per cent following an extended partnership with Meta on custom artificial intelligence chips, and Tesla rallied 7.62 per cent to lead the major tech players. Large banks also contributed to the positive market mood, with Morgan Stanley rising 4.52 per cent and Bank of America gaining two per cent after delivering earnings that surpassed expectations.

These companies seem to be navigating the inflationary environment and the higher-for-longer interest rate landscape better than smaller firms. Other sectors more sensitive to energy costs, such as the energy industry itself, struggled as crude prices dipped, with TotalEnergies falling more than three per cent.

In the bond and commodities markets, the signals remain mixed but generally supportive of the current risk-on environment. The 10-year Treasury yield is trading near 4.26 per cent, and while the yield curve remains inverted, with the two-year yield higher than the 10-year, equity markets have largely ignored this traditional recession signal for the time being.

Gold, often a rival to Bitcoin for the safe haven title, edged up 0.82 per cent to US$4,829.37 per troy ounce. The fact that both gold and Bitcoin are rising simultaneously suggests that while some investors are betting on peace and economic growth, others are still hedging against the possibility that inflation and war-related uncertainties could return at any moment.

The Russell 2000 also joined the rally, rising 0.30 per cent to 2,713.66, while the Dow Jones Industrial Average slipped 0.15 per cent to 48,463.72. This slight underperformance in the Dow suggests that the market favour is heavily skewed toward growth and technology rather than traditional industrial components.

Looking ahead, the market outlook for Bitcoin remains cautiously bullish, though it is heavily dependent on the continued transparency and volume of daily institutional reports. The key trigger for the next major move will be whether the momentum of these massive spot ETF inflows can be sustained throughout the week.

If the daily reports continue to show hundreds of millions of dollars entering the space, the psychological resistance at US$75,400 will likely crumble. Should the inflows dry up or turn into outflows, a pullback toward the US$73,549 swing low becomes a very real possibility. Investors must remain vigilant, as the current rally is built on the twin pillars of institutional support and fragile geopolitical hopes.

The transition from a speculative asset to an institutional one is nearly complete. Market participants now treat Bitcoin as a legitimate barometer of liquidity and risk. Every tick of the clock brings more data from providers like SoSoValue or Farside that dictates the near-term trend.

For the rally to continue, the support zone around US$74,479 must be defended at all costs. A failure there would signal that the institutional appetite is not as deep as current numbers suggest. Analysts are watching for a daily close above US$75,409 to confirm the next leg of the journey toward the US$76,559 mark.

Ultimately, the events illustrate a world where Bitcoin is no longer an outsider but a central character in the global financial narrative. I will keep watching the market.

 

Source: https://e27.co/the-us76000-question-can-institutional-momentum-sustain-the-current-market-breakout-20260416/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j