Recently, an interesting phenomenon has been unfolding: while the stock prices of tech giants are dull, certain funds are quietly shifting toward high-risk, high-volatility assets.

Yesterday's US stock market staged a classic tug-of-war. The Nasdaq 100 index performed weakly, but the Russell 2000 index, representing small- and mid-cap companies, continued to strengthen and even broke through 2600 points. This is not simply a sector rotation; it reflects a clear change in investors' risk appetite.

Funds withdrawing from large tech stocks are seeking new destinations. These funds are flowing into smaller companies with stronger growth potential but more volatile prices, which in turn is spreading into the cryptocurrency market. Market greed is heating up, with high-beta assets like Bitcoin and Ethereum becoming new targets for capital chasing.

**Why is the strength of small-cap stocks worth paying attention to?**

Historical data shows that rebounds in small-cap indices like the Russell 2000 often lead the upward cycle of crypto assets. When funds start shifting from defensive assets to offensive assets, this signal usually drives the strength of cryptocurrencies like Ethereum and Bitcoin in the following months.

The logic behind this rotation is quite straightforward: large tech stocks with high certainty but limited growth potential have lost their appeal, while more imaginative and resilient assets are being re-evaluated. The Russell 2000 breaking through 2600 points is not only a technical breakthrough but also a market sentiment shift from cautiousness to aggression.

**Opportunities in crypto assets**

When this risk appetite rotation truly unfolds, Bitcoin and Ethereum often enter a "sustained upward trend" mode. While future gains cannot be guaranteed, the historical similarities are enough to keep people optimistic about the upcoming market. The flow of funds, market sentiment shifts—these all point in the same direction.

The strength of small-cap stocks is not an isolated phenomenon but a prelude to a broader risk asset rotation. How the next phase will unfold is now in the hands of investors.