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The Great Migration 🦅
Small-caps or crypto?
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Since the onset of crypto in the early 2010’s, investors have never had this many options to choose from when thinking about where to park their hard earned cash.
Stocks, ETFs & real estate were always the go-to, traditional assets as they like to say.
If you really wanted to really risk it (for the biscuit 🍪), an investor might dabble in small cap stocks, or penny stocks.
Well fast forward to today, that same investor might see the shiny ball of cryptocurrency and give the money that would have previously been for small-caps, to bitcoin or ethereum.
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Same investor, different schtick.
People like to think that crypto is full of kids yelling ‘wen moon!!!🚀🚀’, and while that may be true, it’s not the only type.
Many sophisticated investors are shifting to crypto, and with the introduction of the Bitcoin ETF - that’s only going to increase.
These investors are tired of lighting money on fire in a dying small cap space - don’t believe me? Read last week’s post: https://www.stock-monster.com/p/fall-resource-sector
& who can blame them?
The assets are similar, they’re both highly volatile and very sensitive to geopolitical events. They’re both are known to have liquidity issues.
But most importantly, the potential for returns (and losses) is unmatched in both.
As investors make this "‘Great Migration’, one thing is very clear.
The competition for capital has never been higher.
Will they talk about this in the history books? Probably not.
Companies that used to make money simply for *existing* no longer make it, and investors are demanding more competence.
As investors capital becomes diversified, it means each industry has less of a slice of that investors pie.
With Bitcoin and crypto in general reaching near all-time highs this week, and the small-cap space seeing yearly lows - this great migration is never more clear than now.
As the boundaries between traditional and digital assets blur, investors money will begin to shift.
👋 Colton, Stock Monster.
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This newsletter is for informational purposes only and should not be considered financial advice. Always conduct your own research before making any investment decisions. We have not been compensated in any way for this pick or content; we genuinely just like it. Assume that contributors to articles own or have interest in stocks they talk about, therefore may be bias. w