This wave of market decline is a golden zone for dollar-cost averaging, and institutional funds may flow in.

In recent months, there has been a clear divergence in global capital markets, with stock markets becoming relatively easier to profit from, while the crypto space faces numerous challenges. This situation has prompted many investors to start considering global asset allocation strategies.

A-shares valuation approaching historical highs, financing leverage reaching new highs

The trading volume of A-shares has risen to 30 trillion yuan, accounting for 2.54% of the total market capitalization, still below the 3.37% during the 2015 bull market. Based on this trend, once the trading volume surpasses 40 trillion yuan, it should be time to consider a left-side top escape.

In terms of margin balance (leverage scale), it has now reached 2.6 trillion yuan, setting a new record, representing 2.53% of the circulating market value. Compared to over 4.5% at the peak of the 2015 bull market, this indicates that funds are still actively flowing in, and market sentiment remains in accumulation.

Sudden drops at this time are good opportunities to get on board

After 16 consecutive positive trading days, a 1 to 2-day sharp decline could occur at any time. Such pullbacks do not require excessive panic; in fact, they are risk-free participation opportunities. It is recommended to seek entry points during adjustments in hot sectors such as aerospace commercial, brain-machine interfaces, and AI applications.

Opportunities in the crypto space are hidden in the lows

The crypto market has recently been calm, and the best strategy is to patiently wait for a wave of panic selling, even expecting the entire market to create new lows, followed by low-position accumulation.

It is worth noting that the ETH staking exit queue has recently been nearly cleared, with a peak of 2.6 million ETH in line, indicating that the selling pressure has significantly decreased. Any decline at this position presents an excellent participation opportunity, with high cost-performance, and can even be regarded as a golden zone for dollar-cost averaging.

When institutional funds will reflow depends on the risk release in the stock market

The high-probability event of institutional funds returning to the crypto market is expected to occur as stock market risks continue to increase. At that time, institutions will turn to the liquidity reservoir of the crypto space to seek better risk-adjusted returns.

According to the latest annual report data, Binance’s annual trading volume has reached 34 trillion USD, comparable to A-shares (58 trillion USD) and US stocks (50 trillion USD). In terms of user numbers, Binance has 300 million users, compared to 250 million for A-shares and 200 million for US stocks, which fully demonstrates that the crypto space has become a relatively mature asset market, capable of attracting large institutional asset allocations.

As stock market valuations become increasingly unattractive, the long-silent crypto market will become the main beneficiary of capital flows. However, investors need more patience, as smart money is currently enjoying dividends in the stock market feast. Who would actively enter this high-difficulty market to compete with retail investors? This is precisely the opportunity for long-term holders.