On Wednesday, the price of Bitcoin fell below $87,000, while the US S&P 500 index hit an all-time high. This inverse trend may seem strange, but it actually reflects a widespread redistribution of global capital ahead of the year's end. Understanding the financial logic behind this is crucial to grasping the trends in the crypto market.

Strong economic data in the United States has become a strong magnet for profits in the US stock market. The economic growth rate in the third quarter was 4.3%, significantly exceeding expectations, with notable performance in consumption, investment, and other sectors. This economic improvement directly translates into optimistic earnings forecasts for companies, and the US stock market is essentially a pricing market for corporate value. Behind the record high of the S&P 500 index lies the ongoing "profit-taking" effect, with a continuous flow of new capital following the trend.
Meanwhile, the situation in cryptocurrencies appears somewhat awkward. Although Bitcoin is the leader in this field, its high volatility, policy risks, security risks, and other issues are magnified compared to the "certain" returns of the US stock market. Before the year's end, investors generally seek caution, and Bitcoin's high-risk characteristics during this period have become a burden. Data from exchanges show that capital flows from crypto assets have taken a clear direction.
When the hope at the end of the year shifts from "big rise" to "profit preservation," the choice of capital becomes more rational and cooler.