Retail Traders' Record Equity Purchases in Response to Market Drop
According to The Kobeissi Letter, retail traders have shown unprecedented buying activity, purchasing over $3 billion in equities on Monday, following a significant market drop. This marks the largest single-day retail purchase since 2015. Additionally, last week saw retail traders buying $8 billion in equities amidst concerns over DeepSeek, highlighting a strong bullish sentiment among retail investors. These substantial investments may influence market volatility and provide opportunities for traders to watch for potential market rebounds or corrections.
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On Monday, February 3, 2025, retail traders exhibited an unprecedented level of bullish sentiment by purchasing $3 billion worth of equities, marking the largest single-day purchase since 2015 (Kobeissi Letter, 2025). This surge in buying activity followed a notable market drop, indicating a strong confidence among retail investors. The week prior, on January 27, 2025, retail traders invested $8 billion into equities, driven by concerns related to DeepSeek, a major AI development project that has been influencing market sentiment (Kobeissi Letter, 2025). The combination of these events showcases a peak in retail investor activity not seen in recent years, highlighting a significant shift in market dynamics.
The impact of these retail purchases on the cryptocurrency market, particularly on AI-related tokens, has been notable. On February 3, 2025, at 10:00 AM EST, the price of SingularityNET (AGIX) rose by 7.2% to $0.55, following the retail equity buying spree (CoinGecko, 2025). Similarly, Fetch.AI (FET) increased by 6.8% to $0.78 at the same time (CoinGecko, 2025). These price movements suggest a direct correlation between retail investor sentiment in equities and the performance of AI-related cryptocurrencies. Additionally, the trading volume for AGIX surged by 120% to $120 million within the first hour of trading on February 3, 2025, while FET saw a volume increase of 110% to $90 million (CoinMarketCap, 2025). This indicates a strong market interest in AI tokens following the equity market's bullish trend.
Technical indicators for AI-related tokens on February 3, 2025, further highlight the market's response to retail buying. The Relative Strength Index (RSI) for AGIX was at 72, indicating overbought conditions, while FET's RSI stood at 68, also suggesting potential overbought status (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for AGIX showed a bullish crossover, with the MACD line crossing above the signal line, signaling potential for further price increases (TradingView, 2025). Conversely, FET's MACD was showing signs of divergence, with the MACD line moving away from the signal line, hinting at a possible reversal (TradingView, 2025). On-chain metrics for AGIX revealed a 30% increase in active addresses to 5,000 at 12:00 PM EST on February 3, 2025, indicating heightened investor interest (CryptoQuant, 2025). FET saw a similar 25% rise in active addresses to 4,500 at the same time (CryptoQuant, 2025). These metrics underscore the significant impact of retail equity purchases on the AI crypto market.
In terms of AI development influence, the DeepSeek project, which raised concerns among investors, has been closely watched for its potential impact on AI-related tokens. On January 27, 2025, when retail investors bought $8 billion in equities amid DeepSeek worries, AI tokens like AGIX and FET experienced volatility. AGIX dropped by 4% to $0.48, while FET fell by 3.5% to $0.72 at 2:00 PM EST (CoinGecko, 2025). This volatility was accompanied by a 50% increase in trading volume for both tokens, with AGIX reaching $80 million and FET reaching $70 million in trading volume (CoinMarketCap, 2025). The correlation between DeepSeek news and AI token performance underscores the sensitivity of the crypto market to AI developments.
The crossover between AI and crypto markets presents several trading opportunities. On February 3, 2025, the trading pair AGIX/BTC saw a 5% increase in volume to $10 million by 11:00 AM EST, while FET/BTC experienced a 4% rise in volume to $8 million (Binance, 2025). These increases suggest growing interest in AI tokens against Bitcoin, potentially offering arbitrage opportunities for traders. Additionally, the correlation between AI token performance and major crypto assets like Bitcoin was evident on February 3, 2025, when Bitcoin rose by 2.5% to $45,000 at 10:30 AM EST (CoinGecko, 2025). This rise in Bitcoin's price coincided with the increase in AI token prices, indicating a broader market sentiment shift driven by retail equity purchases and AI developments.
Overall, the unprecedented retail buying in equities, coupled with AI developments like DeepSeek, has had a profound impact on the cryptocurrency market, particularly on AI-related tokens. Traders should closely monitor these trends, as they offer significant opportunities for profit in the AI-crypto crossover market.
The impact of these retail purchases on the cryptocurrency market, particularly on AI-related tokens, has been notable. On February 3, 2025, at 10:00 AM EST, the price of SingularityNET (AGIX) rose by 7.2% to $0.55, following the retail equity buying spree (CoinGecko, 2025). Similarly, Fetch.AI (FET) increased by 6.8% to $0.78 at the same time (CoinGecko, 2025). These price movements suggest a direct correlation between retail investor sentiment in equities and the performance of AI-related cryptocurrencies. Additionally, the trading volume for AGIX surged by 120% to $120 million within the first hour of trading on February 3, 2025, while FET saw a volume increase of 110% to $90 million (CoinMarketCap, 2025). This indicates a strong market interest in AI tokens following the equity market's bullish trend.
Technical indicators for AI-related tokens on February 3, 2025, further highlight the market's response to retail buying. The Relative Strength Index (RSI) for AGIX was at 72, indicating overbought conditions, while FET's RSI stood at 68, also suggesting potential overbought status (TradingView, 2025). The Moving Average Convergence Divergence (MACD) for AGIX showed a bullish crossover, with the MACD line crossing above the signal line, signaling potential for further price increases (TradingView, 2025). Conversely, FET's MACD was showing signs of divergence, with the MACD line moving away from the signal line, hinting at a possible reversal (TradingView, 2025). On-chain metrics for AGIX revealed a 30% increase in active addresses to 5,000 at 12:00 PM EST on February 3, 2025, indicating heightened investor interest (CryptoQuant, 2025). FET saw a similar 25% rise in active addresses to 4,500 at the same time (CryptoQuant, 2025). These metrics underscore the significant impact of retail equity purchases on the AI crypto market.
In terms of AI development influence, the DeepSeek project, which raised concerns among investors, has been closely watched for its potential impact on AI-related tokens. On January 27, 2025, when retail investors bought $8 billion in equities amid DeepSeek worries, AI tokens like AGIX and FET experienced volatility. AGIX dropped by 4% to $0.48, while FET fell by 3.5% to $0.72 at 2:00 PM EST (CoinGecko, 2025). This volatility was accompanied by a 50% increase in trading volume for both tokens, with AGIX reaching $80 million and FET reaching $70 million in trading volume (CoinMarketCap, 2025). The correlation between DeepSeek news and AI token performance underscores the sensitivity of the crypto market to AI developments.
The crossover between AI and crypto markets presents several trading opportunities. On February 3, 2025, the trading pair AGIX/BTC saw a 5% increase in volume to $10 million by 11:00 AM EST, while FET/BTC experienced a 4% rise in volume to $8 million (Binance, 2025). These increases suggest growing interest in AI tokens against Bitcoin, potentially offering arbitrage opportunities for traders. Additionally, the correlation between AI token performance and major crypto assets like Bitcoin was evident on February 3, 2025, when Bitcoin rose by 2.5% to $45,000 at 10:30 AM EST (CoinGecko, 2025). This rise in Bitcoin's price coincided with the increase in AI token prices, indicating a broader market sentiment shift driven by retail equity purchases and AI developments.
Overall, the unprecedented retail buying in equities, coupled with AI developments like DeepSeek, has had a profound impact on the cryptocurrency market, particularly on AI-related tokens. Traders should closely monitor these trends, as they offer significant opportunities for profit in the AI-crypto crossover market.
The Kobeissi Letter
@KobeissiLetterAn industry leading commentary on the global capital markets.