Binance: Crypto slump due to funds flowing to US stocks, sees bottom within 20 weeks

The recent weakness in the cryptocurrency market, including Bitcoin, is due to a massive flow of global liquidity into the U.S. stock market rather than an internal structural collapse within crypto, according to an analysis by Binance Research. The research firm highlights the Cboe S&P 500 Dispersion Index as a key indicator of this trend. The index has surged to 42, its third-highest level in history. A high reading suggests that market gains are not broad-based but are instead abnormally concentrated in a small number of stocks and themes. Currently, capital is selectively pouring into a few distinct mega-trends, including artificial intelligence (AI), semiconductors, defense, energy, and raw materials. Binance Research explained that based on historical data, Bitcoin has tended to form a market bottom quickly following such periods of extreme macroeconomic concentration. An analysis of past instances shows Bitcoin typically established a floor within 0 to 20 weeks.