Bitcoin has seen a rebound, holding near $110,000 despite a recent weekend dip. This positive momentum is driven by consistent inflows into crypto spot ETFs like BlackRock’s IBIT, indicating strong institutional backing and growing confidence in crypto as a long-term asset. In contrast, tech stocks, particularly leveraged plays like the TQQQ, are experiencing significant outflows. This trend stems from fading hopes of Fed rate cuts and rising concerns over inflation since April. Investors are showing caution towards the sector. 2025’s market divergence is fueled by QCP’s analysis of key factors driving this shift. 2025 has seen a clear trend of investors shifting away from expensive tech stocks and into crypto, citing its maturity, sophisticated hedging options, and reduced reliance on leverage as compared to previous cycles. Political events like Trump’s EU tariff threats further add stress to equity markets. In contrast, the decentralized nature of crypto shields it from such volatility. 2025’s market divergence is evident in Friday’s critical Core PCE inflation data release. If the data reveals higher-than-anticipated inflation rates, this could delay any Fed easing and potentially harm tech companies even further. Meanwhile, shipping delays in Europe are causing global price increases. This dynamic will likely squeeze tech firms more. On the other hand, crypto, being digital and decentralized, remains unaffected. QCP predicts a continued rise for crypto if inflation persists as a hedge against market volatility.