Content source: TraderS | The unethical person @Trader_S18
Recently, the crypto has been increasingly integrated with the U.S. stock market. I am even considering picking up my old skills and going back to trade U.S. stocks. Previously, exchanges represented by #OKX rushed to list on the U.S. stock market, and later, various exchanges launched U.S. stock tokens. Yesterday, I briefly talked about how Robinhood allowed European retail investors to trade U.S. stocks based on the ARB chain, which led to a surge in $ARB. In the evening, $HOOD lived up to expectations and rose by 12.77%, and even rose by 3.16% after the market, and is about to break through the $100 mark.
I am also thinking about whether the deep linkage between the US stock market and the crypto is a blessing or a curse for the crypto. From the perspective of the overall operating mechanism of the US economy, whether it is the recent promotion of underlying legislation such as the Stablecoin Act, or the two US stock tokenization routes represented by xStocks and Robinhood, they are essentially extracting liquidity from the world.
The role of stablecoins: By absorbing global private liquidity into the U.S. bond market, it provides support for the U.S. dollar system.
Tokenization of U.S. stocks: Attract global funds to the U.S. stock market and further consolidate the position of U.S. financial capital.
This combination of punches gradually confirmed the possibility of the previous idea of changing the anchor of the US dollar. That is to say, after gold and crude oil, the US dollar is preparing to change its anchor to the chain for the third time to continue the hegemony of the US dollar. After all, US stocks and US bonds are just extensions of the hegemony of the US dollar itself. As long as the international status of the US dollar can continue to be maintained, US financial capital can still lie on the world and suck blood. But this requires the United States to maintain a strong military strength as a ballast, and military leadership requires maintaining a strong industry. For the United States, industrial capital and financial capital have the same goals, and the difference is only a dispute over the route.
Well, since these bills, measures, and products may all be intended to facilitate the entry of crypto funds into the U.S. stock market, or to allow more off-market funds to enter the U.S. stock market through the crypto, two situations will arise.
1. The original funds in the crypto were sucked away by the US stock market
2. After the OTC funds are exchanged for stablecoins, they enter the U.S. stock market. The crypto plays the role of a switch and a bridge. In this way, some tolls can be collected, and some funds will remain in the crypto.
But no matter which of the above options is adopted, due to the advantages of the U.S. stock market itself, the disadvantages of the crypto after being recruited in the court are fully exposed. After losing its own unique advantages, it seems to be lost in the crowd. There may never be the scene of everything thriving before 2021. But this is also very similar to niche star chasing. You hope that your idol will be discovered by others one day and soar to the sky, but you are also worried that he will have to hide his edge after entering the mainstream and being accepted by the public and will no longer have the appeal of his youth. From this perspective, the previous copycat season may never happen again. Funds will look for more valuable targets. We must iterate to a newer version to adapt and survive. Digging for gold in the area where stocks and coins intersect may be the best way to play in the near future.
The integration of the US stock market and the crypto is an irreversible trend. In the short term, the crypto may face pressure due to capital diversion, but in the long run, this integration will promote its maturity, and integration will force the crypto to accelerate innovation. As long as the crypto can find a unique position through innovation, the future of the crypto depends on whether it can maintain its own personality in the "court" instead of being completely assimilated by the US stock market.
