At the moment, the stock market is updating its ATH, and theoretically, it can do this for a long time until large institutional investors secure their share of profits. The question is: Where will this money go?
Money, especially large capital, never parks its profits in cash. It's always a spillover from one asset to another. Whether it's the real sector of the economy or the virtual one, it doesn't matter. Unfortunately, predicting where this spillover will go is impossible. We do not have insider information. But we can, based on probability theory, assume which sector of the economy this capital might flow into.
Earlier in our community, I wrote that tokenized shares of US fintech companies (RWA) are starting to be published in the crypto market. And of course, I wrote about both the advantages and the downsides of this process. But, if we assume, again based on the theory of probability, that tokenized shares will serve as a kind of bridge for immediate conversion into crypto assets?
I will try to explain so that you understand. By publishing tokenized shares on crypto exchanges, these same shares can be easily converted into other crypto projects.
It's like exchanging one coin for another through conversion. Convenient.
Therefore, the long process of capital flow without tokenization technology would take longer and involve more bureaucratic hassle. And now, this can be done with just two mouse clicks.
Now let's return to the decline of the background market.
Any asset decline is nothing more than profit realization by large players. And now, with the opportunity to realize profits directly in the stock market and convert part of the profits immediately into the crypto sector, an interesting picture theoretically emerges.
But again, this is theoretical. The Genius ACT & Clarity ACT laws can also be attached here. These laws are not just being proposed and implemented for no reason.
We observe. You must understand, the market can go in any direction. Giving any assessments or making precise forecasts is not a strategy.