Seize the "high value-for-money range" with strong odds at $60,000.

Written by: Xinhui Research Institute

Recently, high-valued AI tech stocks, which have continuously attracted capital in the first half of the year, have begun to show obvious signs of correction. In stark contrast, previously underperforming crypto assets have demonstrated strong rebound momentum recently, primarily reflected in the following three aspects:

• Funds turning positive: Last week, Bitcoin spot ETFs ended several consecutive days of net outflows;
• Sentiment recovery: The "Fear and Greed Index" of the entire crypto market is steadily rising;
• Price recovery: Bitcoin prices have shown a clear trend of continuous rising, having strongly breached the $63,000 mark.

The current market performance indicates that capital is flowing out of the previously overheated AI sector, and global liquidity is shifting towards crypto assets. Xinhui Research Institute believes this shift in capital may stem from institutional investors' repricing of the following three dimensions:

1. Reassessment of Asset "Risk-Return Ratio", Driving Odds Reversal

After a continuous rise lasting half a year, AI-related assets are currently facing the dual structural problems of overpricing and trading congestion, with their upward marginal return space significantly narrowing. In contrast, Bitcoin, after undergoing a deep adjustment, is currently in the "high value-for-money range" that Xinhui Research Institute has repeatedly highlighted.

Based on the natural tendency of capital to pursue optimal odds, when a single market sector signals significant valuation overheating, main funds usually choose to realize profits and allocate their liquidity to asset havens with higher safety margins. This is also the conventional operational logic of macro funds rotating across sectors.

2. Macroeconomic Expectations Leaning Towards Doves, Strong Improvement in Crypto Fundamentals and Compliance Framework

In addition to the odds advantage at the price level, the resonance between the external environment and the internal fundamentals is an important condition for accepting the overflow of AI capital.

Dovish macro policies: The monetary policy expectations of major global economies are marginally loosening, while Federal Reserve Chairman Waller has clearly stated that inflation risks have decreased, which also suggests that the future macro liquidity environment is expected to mildly improve, providing a macro support for risk assets like crypto.

Smooth progress in policies: Recently, over 140 financial giants, including Visa, Stripe, Mastercard, and BlackRock, have jointly launched a new stablecoin alliance, further bridging the moat between traditional finance and the crypto ecosystem. Meanwhile, the stance of the Major County Sheriffs of America (MCSA) on the CLARITY Act has shifted from opposition to neutral, with the expectations of the bill's passage within the year still rising. The maturity of underlying infrastructure and the clarity of regulatory frameworks have allowed market funds to step out of blind speculation and genuinely assess the long-term value of crypto assets.

3. Negative Sentiments Exhausted, Concerns Regarding Strategy "Blowup" Significantly Improving

Previously, the market was concerned that a Strategy "blowup" could trigger a chain liquidation, and this sentiment once suppressed the rebound. However, as the crisis has temporarily resolved and potential risks gradually digested, the extreme panic sentiment in the market has begun to dissipate, and confidence has quickly recovered. Funds are no longer blindly selling but are returning to the decentralized consensus and core asset values of Bitcoin itself.

Seize the "high value-for-money range" with strong odds at $60,000

Considering the current macro environment and funding behaviors, Xinhui Research Institute believes that this round of capital rotation from AI to crypto assets is still in its early stages, and the area around $60,000 remains a "high value-for-money range" with strong odds.

True value discovery often begins with the market's calm examination of frenzied conditions. The current rebound of core crypto assets is not driven by retail sentiment's speculative hype but is a reconfiguration of asset allocation led by institutions. The crypto industry is providing a resilient diversified allocation choice for the global macro financial market through solid technological evolution and compliance development.

In the future, the market structure will evolve towards a more robust digital financial ecosystem, and the differentiation between assets will further intensify. Long-tail assets lacking consensus and compliance support will inevitably face more severe liquidity tests.