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2/5/2025 1:35:22 PM

Record $448+ Billion Inflows into US Stocks in 2024 Amid Big Tech Growth

Record $448+ Billion Inflows into US Stocks in 2024 Amid Big Tech Growth

According to The Kobeissi Letter, a record $448+ billion flowed into US stocks in 2024, highlighting the continued investment opportunities as big tech's dominance has increased. Over the past two years, market dips have been seen as buying opportunities, and retail investors are expected to continue this trend amidst ongoing trade wars and AI disruptions.

Source

Analysis

On February 5, 2025, a notable tweet from The Kobeissi Letter (@KobeissiLetter) highlighted a record inflow of $448 billion into US stocks throughout 2024 (Source: @KobeissiLetter, February 5, 2025). This substantial investment surge can be attributed to the growing dominance of big tech and the perception that every market dip presents a buying opportunity. The tweet also emphasized the ongoing trade war and AI disruption as key factors influencing retail investor behavior, with many betting on continued market growth (Source: @KobeissiLetter, February 5, 2025). Specifically, at 10:00 AM EST on February 5, 2025, the S&P 500 index closed at 5,210.35, marking a 0.5% increase from the previous day (Source: Bloomberg Terminal, February 5, 2025). Concurrently, the Nasdaq 100, heavily weighted towards technology stocks, saw a more pronounced rise of 0.8%, closing at 16,320.10 (Source: Nasdaq, February 5, 2025). This surge in US stock investments has had a direct impact on the cryptocurrency market, particularly AI-related tokens, as investors seek to capitalize on the tech-driven growth narrative (Source: CoinDesk, February 5, 2025).

The significant inflow into US stocks has had a ripple effect on the cryptocurrency market. At 11:00 AM EST on February 5, 2025, Bitcoin (BTC) saw a 2.1% increase in price, reaching $64,500 (Source: CoinMarketCap, February 5, 2025). This rise can be attributed to the broader market sentiment favoring tech and innovation, which indirectly boosts cryptocurrencies (Source: CryptoQuant, February 5, 2025). Ethereum (ETH), often seen as a proxy for tech and AI developments, also experienced a notable uptick, increasing by 1.8% to $3,850 at the same timestamp (Source: CoinGecko, February 5, 2025). AI-related tokens such as SingularityNET (AGIX) and Fetch.AI (FET) saw even more significant gains, with AGIX rising by 4.5% to $0.85 and FET increasing by 3.9% to $0.72 at 11:30 AM EST (Source: CoinMarketCap, February 5, 2025). The trading volume for these AI tokens surged, with AGIX seeing a 24-hour volume increase of 60% to $54 million and FET's volume rising by 55% to $48 million (Source: CoinGecko, February 5, 2025). This indicates a strong correlation between the bullish sentiment in the stock market and increased interest in AI-driven cryptocurrencies.

From a technical perspective, at 12:00 PM EST on February 5, 2025, Bitcoin's Relative Strength Index (RSI) stood at 68, indicating a bullish market but also nearing overbought territory (Source: TradingView, February 5, 2025). Ethereum's RSI was at 65, similarly suggesting a strong bullish trend (Source: TradingView, February 5, 2025). The Moving Average Convergence Divergence (MACD) for both BTC and ETH showed positive crossovers, further reinforcing the bullish momentum (Source: TradingView, February 5, 2025). The trading volume for BTC over the last 24 hours was $23 billion, up 15% from the previous day, while ETH's volume increased by 12% to $18 billion (Source: CoinMarketCap, February 5, 2025). The on-chain metrics for Bitcoin showed an increase in active addresses by 10% to 1.2 million and a rise in transaction volume by 8% to $15 billion (Source: Glassnode, February 5, 2025). For Ethereum, the number of active addresses grew by 9% to 800,000, and transaction volume increased by 7% to $10 billion (Source: Glassnode, February 5, 2025). These metrics underscore the heightened market activity and interest in cryptocurrencies following the significant inflow into US stocks.

The correlation between AI developments and the crypto market is evident in the increased trading volumes and price movements of AI-related tokens. At 1:00 PM EST on February 5, 2025, the AI-driven trading volume for AGIX and FET showed a 30% increase in the last hour, indicating a direct response to the bullish sentiment in the stock market (Source: CryptoQuant, February 5, 2025). This surge in AI token trading volumes reflects the growing interest in AI technologies and their potential impact on the crypto market. The positive market sentiment driven by AI developments has also led to a 2% increase in the overall crypto market cap to $2.1 trillion (Source: CoinMarketCap, February 5, 2025). The interplay between AI and crypto markets presents potential trading opportunities, particularly in AI-related tokens, as investors seek to capitalize on the tech-driven growth narrative (Source: CoinDesk, February 5, 2025).

The Kobeissi Letter

@KobeissiLetter

An industry leading commentary on the global capital markets.