This week, global stock markets clearly shifted to a risk-on mode, with small-cap stocks (Russell 2000) rising nearly 5%, and large-cap and tech stocks also following higher. However, the reaction in the crypto market is a bit interesting—Bitcoin and Ethereum actually pulled back, with declines of around 0.6%-0.7%.

It sounds contradictory, but a closer look reveals that the macro environment is actually favorable, and the weak performance of cryptocurrencies is not due to worsening economic prospects. The key lies in the specific flow of funds—this wave of risk appetite return has led more money to flow into small-cap stocks in traditional equities rather than crypto assets. There may still be volatility in the short term, and ongoing observation of capital flow changes is needed.