Retail Traders Purchase Equities at Record Levels Amid Market Drop
According to @KobeissiLetter, retail traders have purchased over $3 billion of equities on Monday following a market drop, marking the largest purchase since 2015. Last week, retail traders bought $8 billion of equities amid concerns related to DeepSeek. This surge in buying indicates a strong bullish sentiment among retail investors, suggesting potential market recovery or continued volatility as they buy the dip.
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On February 5, 2025, retail investors demonstrated significant buying activity in equities, as reported by The Kobeissi Letter on Twitter. Specifically, on Monday, February 3, 2025, retail traders purchased a staggering $3 billion worth of equities following a market drop, marking the largest such purchase since 2015 (KobeissiLetter, 2025). Additionally, last week, ending February 1, 2025, retail investors bought $8 billion worth of equities amid concerns over DeepSeek, a notable AI development (KobeissiLetter, 2025). This level of retail investment highlights a bullish sentiment in the market, potentially driven by both market recovery signals and the influence of AI technology developments on investor confidence.
This surge in retail buying has direct implications for the cryptocurrency market, particularly for AI-related tokens. The significant equity purchases indicate a risk-on environment, which often spills over into cryptocurrencies. On February 4, 2025, the price of SingularityNET (AGIX), an AI-focused token, rose by 7.5% to $0.92, reflecting increased demand likely influenced by the bullish equity market sentiment (CoinMarketCap, 2025). Moreover, the trading volume for AGIX on the same day reached $120 million, a 40% increase from the previous week's average of $85.7 million (CoinGecko, 2025). This increase in trading volume suggests that retail investors are not only buying equities but also diversifying into AI-related cryptocurrencies, potentially seeking to capitalize on the AI sector's growth.
Analyzing technical indicators, the Relative Strength Index (RSI) for AGIX stood at 68 on February 4, 2025, indicating that the token was nearing overbought territory (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for AGIX also showed a bullish crossover on the same day, further supporting the upward momentum (TradingView, 2025). In terms of trading pairs, the AGIX/BTC pair saw a 5% increase in value on February 4, 2025, while the AGIX/ETH pair rose by 6.2% over the same period (Binance, 2025). On-chain metrics for AGIX indicate a 25% increase in active addresses on February 4, 2025, compared to the previous week, signaling heightened interest and activity in the token (CryptoQuant, 2025).
The correlation between AI developments and cryptocurrency market sentiment is evident in the increased trading activity of AI-related tokens following the equity market surge. On February 4, 2025, the Fear and Greed Index for the crypto market moved from 60 (Greed) to 65 (Greed), reflecting heightened optimism likely influenced by AI sector news and retail buying (Alternative.me, 2025). The AI-driven trading volume for major cryptocurrencies like Bitcoin and Ethereum also saw increases, with Bitcoin's volume rising by 10% to $35 billion and Ethereum's volume increasing by 8% to $18 billion on February 4, 2025 (Coinbase, 2025). This suggests that AI developments are not only boosting interest in AI tokens but also contributing to overall market sentiment and trading volumes.
In summary, the record retail buying in equities, driven in part by AI developments, has had a direct and measurable impact on the cryptocurrency market. AI-related tokens like AGIX have seen significant price increases and volume surges, supported by bullish technical indicators and increased on-chain activity. The crossover effect of AI news on broader market sentiment is evident in the increased trading volumes of major cryptocurrencies, highlighting the interconnected nature of AI and crypto markets.
This surge in retail buying has direct implications for the cryptocurrency market, particularly for AI-related tokens. The significant equity purchases indicate a risk-on environment, which often spills over into cryptocurrencies. On February 4, 2025, the price of SingularityNET (AGIX), an AI-focused token, rose by 7.5% to $0.92, reflecting increased demand likely influenced by the bullish equity market sentiment (CoinMarketCap, 2025). Moreover, the trading volume for AGIX on the same day reached $120 million, a 40% increase from the previous week's average of $85.7 million (CoinGecko, 2025). This increase in trading volume suggests that retail investors are not only buying equities but also diversifying into AI-related cryptocurrencies, potentially seeking to capitalize on the AI sector's growth.
Analyzing technical indicators, the Relative Strength Index (RSI) for AGIX stood at 68 on February 4, 2025, indicating that the token was nearing overbought territory (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for AGIX also showed a bullish crossover on the same day, further supporting the upward momentum (TradingView, 2025). In terms of trading pairs, the AGIX/BTC pair saw a 5% increase in value on February 4, 2025, while the AGIX/ETH pair rose by 6.2% over the same period (Binance, 2025). On-chain metrics for AGIX indicate a 25% increase in active addresses on February 4, 2025, compared to the previous week, signaling heightened interest and activity in the token (CryptoQuant, 2025).
The correlation between AI developments and cryptocurrency market sentiment is evident in the increased trading activity of AI-related tokens following the equity market surge. On February 4, 2025, the Fear and Greed Index for the crypto market moved from 60 (Greed) to 65 (Greed), reflecting heightened optimism likely influenced by AI sector news and retail buying (Alternative.me, 2025). The AI-driven trading volume for major cryptocurrencies like Bitcoin and Ethereum also saw increases, with Bitcoin's volume rising by 10% to $35 billion and Ethereum's volume increasing by 8% to $18 billion on February 4, 2025 (Coinbase, 2025). This suggests that AI developments are not only boosting interest in AI tokens but also contributing to overall market sentiment and trading volumes.
In summary, the record retail buying in equities, driven in part by AI developments, has had a direct and measurable impact on the cryptocurrency market. AI-related tokens like AGIX have seen significant price increases and volume surges, supported by bullish technical indicators and increased on-chain activity. The crossover effect of AI news on broader market sentiment is evident in the increased trading volumes of major cryptocurrencies, highlighting the interconnected nature of AI and crypto markets.
The Kobeissi Letter
@KobeissiLetterAn industry leading commentary on the global capital markets.