10x Research: If retail investors do not shift their attention to encryption concept stocks, the total market capitalization of alts should be about $800 billion higher.

PANews October 24 news, according to Bloomberg, for many years, the total market capitalization of Bitcoin and alts has mostly changed in sync, but this time is different. Bitcoin is increasingly popular among institutional investors, coupled with speculative funds shifting towards stocks related to crypto assets, resulting in a gap of nearly one trillion dollars between Bitcoin and alts. A report by 10x Research states that the missed opportunity belongs to retail investors. Its CEO Markus Thielen stated that if retail investors (especially South Korean retail investors) had not shifted their attention to related stocks, the total market capitalization of alts should have increased by about 800 billion dollars, and during this cycle, it has not attracted enough new funds. Historically, South Korean crypto traders have favored alts, with local exchanges previously accounting for over 80% of trading volume, while global platforms are dominated by Bitcoin and Ethereum. From November 5 to 28, 2024, the average daily trading volume of South Korean crypto exchanges was about 9.4 billion dollars, far exceeding the 7 billion dollars of Kospi, but then the trading volume shrank significantly. 10x Research pointed out that the decline in interest from South Korean traders has led to poor performance of alts, which may indicate a further drop in their market capitalization. Recently, due to international trade tensions, the crypto market experienced a big dump, and alts were hit even harder. At that time, 10x Research stated that out of the 380 billion dollars evaporated in market capitalization, about 131 billion dollars was concentrated in alts. For alts, investors shifting their attention to Bitcoin and crypto-related stocks represents a 'structural shift,' and this market capitalization gap seems unlikely to be filled in the short term.