2025-12-31 09:27:00

Funds are not leaving the market; they are just rotating — this is the most critical understanding in the current market.

Looking ahead to early 2026, volatility is indeed expected to rise, but this is far from a bear market signal. The Federal Reserve's policy shift combined with the resilience of corporate earnings still being maintained means the liquidity foundation remains solid. The key is to understand the logic behind capital flow.

The main investment themes for large funds are very clear: AI, technology, and risk assets will remain connected. Even if there are short-term fluctuations, the long-term deployment direction of institutions has not changed. In fact, volatility presents an opportunity for reallocation — a window for investors sensitive to market rhythm to adjust positions and optimize allocations.

From another perspective, early volatility often breeds new opportunities. Instead of worrying about capital withdrawal, focus on where the funds are flowing. In this rotation, those who can grasp the rhythm of allocation will be able to follow the market's main trend.

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YieldWhisperer

· 12h ago

"rotation not exodus" sounds good until you actually check the on-chain data... tvl moving to same 5 protocols screams artificial liquidity, not organic capital reallocation. seen this exact pattern in 2021 before the whole thing collapsed lmao

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EyeOfTheTokenStorm

· 12h ago

Rotation? I think they're just trying to trick us into buying in again. They said the same thing last year, and look what happened...

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MidnightSnapHunter

· 12h ago

The rotation does not mean leaving the market; I have fully understood this logic. The key is to keep an eye on the flow of funds and not be scared off by fluctuations. That's right, the AI sector has been firmly set by institutions for a long time, and short-term volatility cannot change the overall direction. I'm just worried that retail investors are still debating whether it's a bear or not, not realizing that it's already a heavy position window. It's a common saying: volatility = opportunity. I've heard this many times, but the key is whether you can keep the rhythm. Most people are still on the sidelines; smart money has already been reallocating. The focus is not on whether funds are leaving, but whether you can keep up with this round of rotation. Sense of rhythm is the key. Liquidity is still there; as long as the foundation is stable, there's no need to fear. The Federal Reserve has shifted its stance, and the allocation space has actually opened up. It all depends on who can seize the opportunity.

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RebaseVictim

· 12h ago

Whether to rotate or not, the key still depends on who can hit the right rhythm. Follow the institutions' moves exactly, don't worry about where the funds are flowing, just keep an eye on the AI and technology sectors.

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