A recent research report released by Bitwise has attracted a lot of attention, with a core argument that is quite interesting—cryptocurrency-related publicly traded companies can outperform traditional tech stocks in favorable market conditions. This conclusion sounds somewhat counterintuitive, but if you understand the underlying logic, you'll find it quite plausible.

**What is the core point of the report?**

Bitwise mentions in their research that crypto concept stocks such as exchanges and Bitcoin holding companies essentially create structural leverage on digital assets. In other words, the performance and profitability of these companies are closely tied to the price movements of cryptocurrencies. For example, a 10% increase in Bitcoin might lead to a 20% increase in trading volume for exchanges, and consequently, the company's revenue and stock price could rise far beyond the crypto price itself. In contrast, traditional tech giants like Apple and Microsoft, no matter how excellent, operate on relatively stable business models and do not exhibit this kind of leverage effect.

**Why does this phenomenon occur?**

Imagine that when the entire crypto market enters a bull phase, user trading enthusiasm surges, and exchange fee income increases significantly. If a coin-holding company has accumulated Bitcoin during a bear market, its asset book value can double when the bull market arrives. This business model, which is directly exposed to crypto price fluctuations, will naturally perform better when the market is bullish. Meanwhile, traditional tech companies, although fundamentally solid, tend to grow at a steady pace and find it difficult to match this explosive growth.

**How to understand this in market reality?**

Over the past few years, many have discussed Bitcoin’s four-year cycle. While this cycle theory has some reference value, Bitwise’s report actually hints at a deeper trend. Once the crypto market warms up, not only will coins like Bitcoin and Ethereum see gains, but the listed companies involved will also benefit significantly. Exchanges, mining companies, wallet service providers—these companies, once labeled as "high risk and high volatility," may now become the most attractive "leverage targets" in a crypto bull market.

**But be aware of the risks**

However, there is no free lunch. This report may be overly optimistic in some aspects. First, regulatory risk is often underestimated. If a region suddenly enacts strict crypto regulations, the stock prices of these companies could plummet sharply, with declines potentially exceeding those of traditional tech stocks. Second, leverage is a double-edged sword. It amplifies gains in a bull market but also magnifies losses when the market turns bearish. When the market declines, trading volume drops, and crypto prices crash, the fall in these stocks could be severe enough to test investors’ nerves.

Additionally, risks vary greatly among different crypto-related companies. Some exchanges are conservative and stable, while others are aggressively expanding; some mining firms have strong technical capabilities, others are struggling. Blindly betting on a particular company without thorough research could lead to pitfalls.

**Advice for investors**

If you are optimistic about the future prospects of the crypto market, then crypto concept stocks are indeed worth paying attention to. But the key is to choose companies with solid fundamentals rather than just following hype. Also, be clear about your risk tolerance—these stocks tend to be more volatile than traditional tech stocks and may not be suitable for conservative investors.

From a data perspective, the future performance of BTC and ETH, as the two main pillars of the market, will directly determine the ceiling for these concept stocks. If you have a long-term bullish view on the crypto market, leveraging tools like crypto concept stocks can indeed amplify returns. But the prerequisite is that you have sufficient understanding and psychological resilience.