Tag Archives: institutional

While S&P 500 struggles, crypto’s low correlation to gold and stocks attracts institutional attention

While S&P 500 struggles, crypto’s low correlation to gold and stocks attracts institutional attention

The crypto market’s modest advance of 0.51 per cent to a total capitalisation of US$2.3T over the last 24 hours represents more than a simple price fluctuation. It signals a market beginning to price in a fundamental shift in its operating environment. This move appears internally driven rather than a reflexive follow-through from traditional finance. Correlation data support this view.

The crypto market’s relationship with the S&P 500 is negligible at 0.8 per cent, while its tie to Gold is low at 15 per cent. This decoupling suggests capital is responding to crypto-specific catalysts, primarily a growing conviction that the United States regulatory landscape may finally be evolving. This moment feels familiar yet distinct. We have seen false dawns before, but the current momentum behind the CLARITY Act carries a different weight, one that markets are increasingly willing to bet on.

The primary engine of this cautious optimism is the rising likelihood that the CLARITY Act will become law. Prediction market Polymarket now reflects an 85 per cent chance of passage, a figure cited by industry leaders like Ripple CEO Brad Garlinghouse, who points to a potential timeline by April 2026. This is not merely a political statistic. It represents a potential removal of the single greatest overhang on institutional capital allocation.

A clear legal framework does more than just provide compliance checklists. It enables the construction of long-term valuation models that investors could not build under a regime of enforcement by litigation. The market is actively discounting this reduced uncertainty.

A critical perspective remains essential. Legislative odds can shift rapidly. True progress requires watching for concrete actions: official committee markups, bipartisan statements of support, and the actual text of proposed amendments. The next few weeks will provide crucial data points to separate genuine momentum from speculative noise.

While regulatory hopes provide the macro backdrop, capital is expressing its views with notable selectivity. The broader market’s slight gain masks a clear rotation into specific narratives. The Layer 1 category advanced 0.65 per cent, outperforming the aggregate.

Within that, infrastructure and artificial intelligence tokens demonstrated significant strength. Enso posted a gain of 35.74 per cent while Allora advanced 12.9 per cent. This pattern reveals a trader psychology that is opportunistic but not yet broadly confident. Participants are seeking alpha in defined thematic buckets rather than deploying capital indiscriminately. Sentiment data corroborates this cautious stance.

The Fear and Greed Index, while improving from a reading of 8 to 11, remains firmly in Extreme Fear territory. This combination of selective bullishness and pervasive caution defines the current tape. It suggests a market building a foundation for a potential relief rally, but one that remains vulnerable to a shift in the regulatory narrative or a broader macro shock.

The near-term technical pathway for the market hinges on two clear levels. On the upside, the total market capitalisation faces immediate resistance at the 78.6 per cent Fibonacci retracement level of US$2.35T. A sustained break above this threshold could signal a meaningful short-term trend reversal, inviting further speculative interest.

On the downside, Bitcoin’s ability to hold the US$66,000 support level is paramount. A decisive break below this price could quickly reignite the bearish sentiment that fueled the market’s 27.5 per cent decline over the past month.

These technical levels are not arbitrary. They represent the collective memory of recent price action and the current balance between buyers and sellers. Monitoring daily closes relative to the US$66,000 to US$67,000 zone for Bitcoin, alongside updates to the CLARITY Act’s legislative progress, provides a practical framework for assessing short-term direction.

The market is asking a simple question: can regulatory optimism overcome technical overhead and fragile conviction

This crypto-specific drama unfolds against a backdrop of traditional market stress, which further highlights the asset class’s evolving independence. Major US stock indices declined on Thursday, February 19, 2026, with the S&P 500 slipping 0.28 per cent to close at 6,861.89. The drivers were classic macro headwinds: geopolitical tensions between the US and Iran pushed oil prices higher, with Brent crude settling at US$71.66 a barrel, a six-month high.

Concurrently, concerns over private credit liquidity resurfaced after a major fund halted redemptions, sending shares of alternative asset managers such as Blackstone and Apollo Global Management down by more than five per cent. This news struck at the heart of the US$1.8T private credit market.

Even better-than-expected labour data, which showed initial jobless claims falling to 206,000, well below the forecast of 227,000, could not offset these fears. The data briefly pushed the 2-year Treasury yield to 3.468 per cent, reflecting complex investor calculations about growth and inflation.

In this environment, crypto’s low correlation is not just a statistical curiosity. It represents a potential portfolio diversification benefit that institutional investors are beginning to seriously evaluate, provided the regulatory path forward becomes clearer.

The current market posture, therefore, is one of cautious optimism anchored by a tangible, though not yet realised, reduction in regulatory risk. For those of us who believe in the long-term promise of decentralised systems, the path forward requires more than just favourable legislation. It demands building infrastructure and applications that deliver undeniable utility.

The current price action is a hopeful signal, but the real work of integrating these technologies into the global financial fabric continues, independent of daily price fluctuations or political odds. The market’s next move will be a test of whether this foundational work is beginning to be recognised and valued by a broader set of participants.

 

Source: https://e27.co/while-sp-500-struggles-cryptos-low-correlation-to-gold-and-stocks-attracts-institutional-attention-20260220/

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

Crypto market cap hits US$2.4T again: Why institutional whales are buying the dip

Crypto market cap hits US$2.4T again: Why institutional whales are buying the dip

Major US stock indices climbed on Tuesday, February 10, 2026, thanks to a strong rebound in technology shares that calmed worries about recent spending on artificial intelligence. Investors watched the S&P 500 rise 0.5 per cent to close at 6,964.82, inching nearer to the all-time high from two weeks earlier. The Nasdaq Composite, heavy with tech stocks, jumped 0.9 per cent to 23,238.67, while the Dow Jones Industrial Average barely moved, adding less than 0.1 per cent to end at 50,135.87.

This uptick came after a tough stretch last week, where tech stocks faced heavy selling. Chipmakers drove much of the recovery, with Nvidia gaining 2.4 per cent and Broadcom advancing 3.3 per cent. Oracle stood out with a sharp 9.6 per cent increase. These moves highlighted how quickly sentiment can shift in the tech sector, especially amid ongoing debates about AI investments.

Beyond US markets, international developments added to the positive tone. Japan’s Nikkei 225 reached a fresh all-time high, surging 2.8 per cent after the incumbent government secured a historic election mandate. This boost reflected growing confidence in Japan’s economic policies and stability. Treasury yields stayed calm, with the 10-year note holding near 4.20 per cent.

Traders largely ignored news that China encouraged its banks to reduce holdings of US Treasuries, suggesting that markets focused more on domestic factors. In commodities, gold dropped about 0.7 per cent to US$5,023.82 per ounce, while West Texas Intermediate oil fell 0.4 per cent to US$64.13 a barrel. Traders kept an eye on potential supply disruptions in the Strait of Hormuz, but no immediate threats materialised. Bitcoin hovered just under US$71,000, steady after briefly topping that mark over the weekend.

Attention now turns to key economic data releases. Retail sales figures arrive on Tuesday, and CPI inflation numbers follow on Friday. These reports will shape expectations for the Federal Reserve’s next interest rate move. Investors have begun shifting some funds into real-economy sectors, and demand for AI-related tech stocks remains robust, supporting overall index levels. This rotation shows a market balancing innovation hype with practical economic signals.

From my perspective, this setup feels like a fragile equilibrium. The tech rebound offers relief, but if upcoming data disappoints, volatility could return swiftly. Markets often overreact to hints of inflation, and with AI spending under scrutiny, any sign of cooling could pressure gains.

In cryptocurrencies, the market edged up 0.28 per cent to a total capitalisation of US$2.4 trillion over the last 24 hours. This modest gain marks a brief halt after a steep downtrend, aligning closely with traditional stocks. A strong 89 per cent correlation with the S&P 500 points to shared influences from broader economic relief. Bitcoin’s tentative support after a 46 per cent drawdown stands as the main driver. Selective institutional buying has helped stabilise prices.

Secondary factors include sharp pumps in smaller altcoins and slightly upbeat social sentiment around Ethereum accumulations. Looking ahead, the market’s strength depends on Bitcoin maintaining the US$65,000 to US$70,000 range. Dropping below that could push prices back to the US$60,000 yearly low.

Bitcoin’s stabilisation follows a brutal capitulation phase. The total market cap tries to hold at US$2.4 trillion after plummeting 46 per cent from its October 2025 peak. This aligns with Bitcoin testing a critical historical support at the 1.25x realised price level, which historically divides regular corrections from deeper selloffs. The small uptick indicates that the intense selling from January and early February might ease, paving the way for a technical rebound.

Investors should closely monitor Bitcoin’s defence of US$65,000. A failure there might spark fresh liquidations, extending the pain. In my view, this support level acts like a psychological floor. Historical patterns suggest bounces often follow such tests, but current macro uncertainties make outcomes less predictable. The correlation with stocks amplifies risks, as any equity dip could drag crypto lower.

Speculative activity and changes in sentiment add layers to the recovery. While the overall market stayed flat, low-cap altcoins like GPS, AXS, and ZKP surged 20 per cent to 75 per cent on large volume. This shows capital flowing into riskier bets for fast profits, though it falls short of a full altcoin rally. Social sentiment for assets like Ethereum improved to a mildly bullish 4.83 out of 10. On-chain data reveals significant accumulations by major players, such as Bitmine.

For instance, Bitmine, linked to Tom Lee of Fundstrat, recently acquired another 20,000 ETH valued at US$41.08 million from FalconX’s hot wallet. This transaction, highlighted in on-chain tracking, fits a pattern of inflows. Just six days earlier, Bitmine received another 20,000 ETH worth US$46.04 million from the same source. Over the past two weeks, additional batches included 40,320 ETH at US$113.39 million, 38,400 ETH at US$107.99 million, 30,720 ETH at US$86.39 million, another 38,400 ETH at US$107.99 million, 28,800 ETH at US$80.99 million, 26,880 ETH at US$75.59 million, 30,720 ETH at US$86.39 million, 34,560 ETH at US$97.19 million, and 23,040 ETH at US$64.79 million. These moves signal structured buying by institutions, boosting short-term confidence.

Community reactions underscore this as smart money at work. Observers note the buys as strategic positioning rather than random trades. One commenter compared it to aggressive corporate strategies in crypto, while others highlighted the scale of the accumulation amid market fear. Ethereum’s positive whale activity provides a counterweight to broader caution.

From where I stand, these accumulations reveal an underlying belief in crypto’s long-term value. Institutions like Bitmine spot opportunities in dips, betting on future growth. This contrasts with retail hesitation, resulting in an uneven recovery. If more entities follow suit, it could spark broader buying, but isolated actions might not sustain momentum on their own.

The near-term outlook remains guarded. Two key elements will determine the path: Bitcoin’s push to reclaim and defend the US$73,000 resistance level, and the flow direction in US spot Bitcoin ETFs after recent net outflows. The Fear and Greed Index sits at 10, indicating extreme fear, which often precedes relief rallies when buying picks up. Holding above US$70,000 might drive the total cap toward US$2.5 trillion over time.

Without consistent spot demand, prices could revisit last week’s lows near US$60,000. Upcoming stock market data ties in here, as retail sales and CPI could sway Fed decisions, indirectly affecting crypto through risk sentiment. My take is that this moment offers a chance for stabilisation, but fragility persists. The 46 per cent drawdown scarred investors, and rebuilding trust takes time. If Bitcoin holds its ground, we might see a slow grind higher, fuelled by tech’s AI tailwinds and institutional dips.

In conclusion, today’s market action reflects cautious stabilisation across assets. Stocks rebounded on tech strength, easing AI concerns, while crypto paused its slide with help from Bitcoin support and selective buys. The interplay between traditional and digital markets grows clearer with that 89 per cent correlation. Institutional moves, like Bitmine’s ETH hauls, inject optimism, but the outlook hinges on key levels and data.

I see potential for a relief bounce if supports hold, and I warn against overconfidence. Extreme fear levels suggest upside if sentiment flips, but macro headwinds loom. Traders should watch Bitcoin’s US$65,000 to US$70,000 zone closely, as it will dictate whether this uptick endures or fades. Overall, markets catch their breath after tough times, setting up for pivotal days ahead.

 

Source: https://e27.co/crypto-market-cap-hits-us2-4t-again-why-institutional-whales-are-buying-the-dip-20260210/

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 flowing into crypto, even as fear grips retail

Why institutional money is flowing into crypto, even as fear grips retail

Markets held steady this week as bets on a Federal Reserve rate cut gained traction. The latest economic data painted a mixed but telling picture. Private-sector payrolls unexpectedly dropped by 32,000 in November, the steepest decline since March 2023. Initial jobless claims remained stable, pointing more to a slowdown in hiring than a wave of layoffs. At the same time, the ISM Services PMI rose to 52.6, underscoring the underlying strength of the services sector, which continues to drive the US economy. Together, these signals reinforce growing expectations that the Fed will opt for a 25 basis point cut at its December meeting, setting the stage for a subtle but significant shift in market dynamics across both traditional and digital assets.

US equities responded positively, with the S&P 500 rising 0.3 per cent, the Dow Jones climbing 0.9 per cent, and the Nasdaq edging up 0.2 per cent. This modest advance reflects cautious optimism rather than exuberance. Market strategists recommend consolidation within US equities while selectively expanding exposure to non-US markets, particularly value-oriented and mid-cap segments where alpha potential remains underexploited. This global tilt acknowledges that while US large-cap tech continues to anchor portfolios, diversification beyond Silicon Valley may offer better risk-adjusted returns as monetary policy shifts.

In the fixed income space, Treasury yields declined across the curve following the weaker-than-expected ADP report. The 10-year yield settled at 4.086 per cent, down 2.3 basis points, while the two-year yield fell to 3.483 per cent, a 2.5 basis point drop. The inversion between these two benchmarks persists, though the narrowing spread signals growing confidence in near-term rate cuts. For investors, this dynamic makes high-quality fixed income increasingly attractive as a defensive asset class positioned to benefit from the onset of Fed easing. Accumulating duration now could yield meaningful capital appreciation once the pivot becomes official.

Currency markets also reflected shifting rate expectations. The US dollar weakened broadly, with EUR/USD approaching a seven-week high thanks to stronger-than-expected Eurozone data. Meanwhile, USD/JPY fell 0.4 per cent to 155.25, as speculation mounts that the Bank of Japan may hike rates as early as December. The narrowing yield differential between US and Japanese bonds supports further yen strength, potentially reversing one of the most persistent carry trades of the past two years. For global investors, this FX shift underscores the importance of hedging and currency-aware portfolio construction.

In commodities, geopolitical risk resurfaced as a price driver. Brent crude rose 0.4 per cent to US$62.67 per barrel after US-Russia negotiations failed to produce a breakthrough on ending the war in Ukraine. This underscores oil’s continued sensitivity to diplomatic developments, even amid tepid global demand. Gold, meanwhile, held steady at US$2,003 per ounce. The figure cited as US$4,203 per ounce in the prompt appears to be a typographical error. Gold’s stability signals that investors are still allocating to hedges, just not in panic mode.

Asian equities traded mixed, reflecting regional caution ahead of key US labour data. US futures pointed higher, suggesting spillover optimism. Strategists maintain an overweight position on Chinese equities but advocate a barbell approach, favouring both high-growth tech names and stable dividend payers. This reflects a pragmatic stance. China’s recovery remains fragile, but select sectors offer compelling valuations and policy tailwinds.

Turning to digital assets, the crypto market rose 1.35 per cent over the past 24 hours, extending its weekly gain to 2.69 per cent, though it remains 9.93 per cent below its 30-day peak. This performance aligns closely with broader risk sentiment but carries unique catalysts rooted in institutional adoption and product innovation.

The most significant development came from institutional validation. BlackRock CEO Larry Fink, once a vocal sceptic, now frames Bitcoin as an asset of fear, a geopolitical hedge akin to gold. This rhetorical shift carries immense weight given BlackRock’s US$9 trillion in assets under management and its role as the issuer of the largest US spot Bitcoin ETF. Simultaneously, Bank of America recommended allocating up to 4 per cent of portfolios to crypto, signalling a mainstream endorsement that reduces stigma and may unlock cautious capital from traditional wealth managers and family offices. The impact is already visible. US-listed Bitcoin ETFs exceeded US$1 billion in daily volume, while Ethereum ETF assets under management climbed to US$17.8 billion. These figures suggest crypto is transitioning from speculative fringe to strategic allocation.

This institutional embrace is not uniform. Grayscale’s launch of a Chainlink ETF drew US$37 million in inflows on its debut, challenging the assumption that ETF demand is confined to Bitcoin and Ethereum. This signals a growing appetite for altcoins within regulated structures, a potential gateway for billions in institutional capital to enter the broader ecosystem. The lukewarm reception of Solana-based Dogecoin ETFs, which garnered only US$177,000 in inflows, reveals uneven adoption. Success for niche ETFs could democratise altcoin exposure, but it also risks fragmenting attention and capital, especially when Bitcoin’s market dominance stands at 58.6 per cent. The market must balance innovation with focus.

Technically, the crypto rally appears sustainable in the near term. The total market cap reclaimed the 50 per cent Fibonacci retracement level at US$3.18 trillion on rising volume. The MACD indicator flipped bullish, and funding rates turned slightly positive at plus 0.0027 per cent, indicating leveraged traders are cautiously re-entering long positions. The Fear and Greed Index remains at 27 out of 100, deep in fear territory, warning that sentiment remains fragile despite price action. This disconnect suggests retail participation is still muted, and institutional flows are driving the move.

Critically, crypto’s macro correlation remains a double-edged sword. Bitcoin’s 0.65 correlation with the S&P 500 means it still behaves more like a risk asset than a true safe haven. While Fink’s asset of fear narrative gains traction, market mechanics tell a different story. Crypto rallies when equities do, and sells off during risk-off events. True decoupling would require sustained outperformance during equity drawdowns, a test not yet passed.

All eyes now turn to tonight’s US nonfarm payrolls report. A weak print would reinforce the Fed cut narrative, potentially amplifying crypto’s hedge appeal and driving further inflows into Bitcoin ETFs. A strong report could revive fears of a higher-for-longer rate regime, triggering a risk-off rotation out of speculative assets.

In sum, today’s market moves reflect a delicate equilibrium between softening labour data and resilient services activity, between dollar weakness and yen strength, between institutional crypto adoption and lingering retail fear. The Fed’s expected pivot provides a tailwind, but execution risk remains high. For crypto, the path forward hinges on sustaining ETF momentum, navigating regulatory headwinds like Citadel’s anti-DeFi lobbying, and proving its value beyond correlation. The next major data point will either validate this cautious optimism or expose its fragility.

 

Source: https://e27.co/why-institutional-money-is-flowing-into-crypto-even-as-fear-grips-retail-20251204/

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