Binance Research recently analyzed that the weakness in the virtual asset market, including Bitcoin, is not due to a structural collapse within the crypto sector, but rather a 'fund concentration phenomenon' where global liquidity is strongly flowing into the US stock market.

As evidence to support this, Binance Research presented the 'Cboe S&P 500 Dispersion Index,' which shows the extreme thematic concentration in the US stock market. Currently, this index has surged to 42, recording the third-highest level in history. A high figure indicates that rather than the overall stock market rising evenly, buying pressure and trading volume are abnormally concentrated in a specific few stocks or themes. In fact, funds are currently in a state of selectively flocking only to a few distinct mega-trends, such as artificial intelligence (AI), semiconductors, defense, energy, and raw materials.

Based on past data, Binance Research explained that following such macroeconomic fund concentration phenomena, Bitcoin quickly formed a bottom. An analysis of past cases where thematic concentration in the US stock market reached extremes showed that Bitcoin generally formed a market bottom within 0 to 20 weeks.