2026-01-08 04:29:36

Why is the market so strong every January? There is actually a huge secret behind this hidden flow of funds.

At the beginning of the new year, American institutional investors and high-net-worth individuals enter the most active capital allocation window of the year. After the holiday season, a large amount of funds begin to accelerate out of cash pools — including annual retirement contributions (401k, 529 education savings plans), year-end corporate bonuses, and directive funds entrusted entirely to private wealth management teams.

The key is that almost all of this money flows into passive risk assets. Especially in the current environment where yields in the money market are generally declining, this phenomenon is even more evident. Institutional investors have no choice — the returns on cash are no longer attractive, so whether it’s stocks, cryptocurrencies, or other high-yield investments, they all become hot commodities.

This is the real logic behind the generally strong January market. Improved liquidity + policy expectations + institutional allocation cycles, with these three factors stacking together, how could it not rise?

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GasFeeBarbecue

· 01-11 04:24

Damn, so the big surge in January was actually institutions bottoming out. I thought there was some kind of black technology behind it.

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UnluckyValidator

· 01-11 03:34

Damn, so the big surge in January was really institutional buying... I better hop on the train quickly.

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MevSandwich

· 01-09 13:12

Oh, I see now. No wonder I always make money in January... This group of people at 401k is really awesome.

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SatoshiHeir

· 01-08 04:57

It should be pointed out that this argument has a fundamental flaw. On-chain data shows that the main driver of the January rally was not institutional 401k funds in the US stock market—those have little to no impact on the crypto space. The real secret lies in the game theory of futures delivery cycles and whale accumulation; you are all deceived by appearances. Undoubtedly, this is a typical fallacy of fiat thinking projected onto crypto assets. BTC's price discovery mechanism has long surpassed traditional finance; why insist on applying Wall Street's script?

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SeasonedInvestor