A few different dynamics are increasing the probability of big capital inflows.

With the crypto market reeling from what seems like a never-ending beating since the Oct. 10 flash crash, it's natural for investors to wonder when or if things will start to look up again. The answer to that question is especially important, considering that those pivot moments, when capital rotates out of one sector and into a previously ignored area, tend to be where long-term wealth is quietly (and sometimes even quickly) built by those with foresight.

Are the pieces falling into place for a major rotation back into crypto, or is this just wishful thinking from battered coinholders?

![Two investors sit at a desk in front of laptops and papers as one holds a pen while explaining something to the other.](https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F843399%2Ftwo-investors-meet-and-discuss.jpg&w=3840&op=resize)

*Image source: Getty Images.*

## Why crypto looks unloved again

One of the classic precursors to a sector rotation is a big gap in **valuations**. Today, the gap between crypto and the stock market is stark.

The **S&P 500**'s forward-12-month **price-to-earnings (P/E) ratio** is currently 23.1, which is well above its five-year, 10-year, 15-year, 20-year, and 25-year averages. The long-run median is a P/E of 17.5, so the market's current valuation is quite rich. That could have the effect of forcing value-sensitive investors to hunt for greener pastures where assets are a bit cheaper, sparking a larger rotation once they get established and prices start to trend upward.

Crypto might have what they're looking for. For 2025, the global crypto market cap is down by approximately 10%, even though **exchange-traded funds (ETFs)** helped push **Bitcoin** to new all-time highs earlier in 2025, and newer ETFs have paved the way for similar inflows into other key crypto assets like **Ethereum**, **Solana**, and **XRP**. Bitcoin is now down by 10% over the past 12 months, and has given back most of its year-to-date gains amid the recent sell-off.

Fear is currently gripping the market, and many investors are openly wondering if another **crypto winter** is on the horizon.

But a recent decline in price isn't enough to attract investors seeking fundamental value. On that front, the process of putting a valuation on cryptocurrencies is still an emerging art. That makes it even harder for investors to clearly see when the market is pricing something incorrectly.

## The building blocks of the next rotation are in place

On the surface, crypto's recent performance looks ghastly enough to dissuade most investors. But under the surface, a couple of slow-moving trends are improving for the major crypto assets, especially for stores of value like Bitcoin, and also for **smart contract** platforms like Solana and Ethereum.

Assuming that inflation stays elevated enough to keep investors uneasy about holding **fiat currency**-denominated assets like cash and long-duration bonds, it's plausible that some of the capital currently parked in expensively valued places like gold or index funds could end up rotating into Bitcoin as a complementary hedge against currency debasement. For the smart contract platforms, the main long-term driver is **tokenization**, which you can think of as recording the ownership of bonds, funds, and other real-world assets (RWAs) on blockchains.

The total value of tokenized RWAs managed and traded on blockchains recently passed roughly $18.3 billion, which is still tiny relative to global markets, but more than quadruple the level at the start of 2023. Boston Consulting Group (BCG) has suggested that the market for tokenized assets could reach a value as much as several trillion dollars by 2030 if adoption accelerates, so there's likely still a huge amount of gas left in this trend. If even a conservative slice of that forecast RWA market lands on public chains, it should significantly deepen demand for the native tokens of these blockchains because investors need those tokens to pay **gas fees**. So the investment idea is to let these networks quietly become the back office of global finance and gain upside from the tolls they collect along the way.

Then there is the liquidity backdrop. The S&P 500's rich valuation multiple is already being justified by forecasts of rate cuts and supportive fiscal steps over the next couple of years. If those rate cuts materialize, it's likely that at least some of the extra liquidity in the financial system will leak into crypto once investors feel braver again.

So between a new growth narrative and potentially improving macro conditions, it's indeed quite possible for a big capital rotation into crypto to occur, and on a long enough timescale, it'll almost certainly happen. I wouldn't bother to bet on the precise month, though -- you shouldn't be timing the market here, you should be positioning your capital in the coins you think will be the winners of the rotation well before it occurs.

A few different dynamics are increasing the probability of big capital inflows.

Is the Crypto Market Primed for a Massive Capital Rotation? Here's What You Need to Know

When market fear peaks and portfolios bleed red, **generational buying opportunities** emerge. While the crowd panics, smart money accumulates assets that could deliver life-changing returns. As we look toward 2026, several projects stand out as compelling investments with explosive potential.

![DeepSnitch AI Dashboard](https://blockchainreporter.net/wp-content/uploads/2025/11/deepsnitchai.jpg)

## DeepSnitch AI ($DSNT): The Presale Powerhouse

**DeepSnitch AI** has positioned itself as the standout opportunity with its January 2026 exchange debut approaching rapidly. The project has already raised over **$600,000** in presale funding with tokens priced at just **$0.02527**. What separates this project from typical presale hype is that the core infrastructure is already operational.

The AI-powered intelligence suite provides retail traders with institutional-grade market visibility, and over **14 million DSNT tokens** have already been committed to staking. Early investors are sitting on **60% gains** even before the token hits major exchanges.

<iframe title="Why DeepSnitch AI Might Be the Best Crypto To Buy in 2025??" width="500" height="281" src="https://www.youtube.com/embed/k_3J8xxW7HM?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>

## Starknet (STRK): Layer-2 Breakout Star

**Starknet** exploded with a **350% surge** in November following the mainnet "Stwo" upgrade. Trading around **$0.14**, this Layer-2 solution is gaining significant attention with its new Bitcoin-staking feature. For investors seeking exposure to the scaling sector, STRK represents a solid long-term play with strong adoption potential heading into 2026.

![STRK Price Chart](https://blockchainreporter.net/wp-content/uploads/2025/11/strk-chart.webp)

## Render (RENDER): AI Infrastructure Play

When Amazon announced its **$50 billion federal AI contract**, RENDER immediately jumped **4%**. Trading around **$1.77**, this decentralized rendering network stands to benefit significantly from the AI boom. Analysts project potential moves into the **$4 to $6.50 range** with normal market recovery, while a stronger AI cycle could push prices toward **$8 to $12**.

## Ondo Finance (ONDO): Real-World Asset Leader

Trading around **$0.51** after retracing from its December 2024 high of **$2.13**, **Ondo Finance** represents the premier Real-World Asset (RWA) opportunity. The project recently invested **$25 million** into Figure Technology Solutions' YLDS stablecoin and aligns with institutional giants like **BlackRock**, whose $12.53 trillion in assets under management represents exactly the type of capital this ecosystem aims to bring on-chain.

## Zcash (ZEC): Privacy Coin Momentum

**Zcash** delivered one of the most surprising performances of the year, ripping over **1,500% year-to-date** and briefly becoming the most-searched cryptocurrency on Coinbase. Trading around **$469**, ZEC saw Grayscale's Zcash Trust assets balloon **228%** in one month, while Cypherpunk Technologies accumulated **$150 million worth** of the privacy coin. With RSI hitting **84** in overbought territory, timing is crucial for capturing potential 100x moves.

![DeepSnitch AI Banner](https://blockchainreporter.net/wp-content/uploads/2025/11/deepsnitchai-banner.jpg)

While each project offers unique value propositions, **DeepSnitch AI** presents the clearest asymmetric setup with working products, proven demand, and imminent exchange listings creating a limited-time opportunity for early investors.

Investors continue to search for the best crypto to buy now. DeepSnitch AI stands out among the top 5, with its launch scheduled for January 2026.

Unlock Massive Gains: 5 Cryptocurrencies Poised for 100x Growth Before 2026

What a difference a day can make in the cryptocurrency world. On Wednesday, following a several days-long rout, digital coins and tokens staged an impressive comeback. Swept along with this were a great many cryptocurrency stocks.

Happily for **CleanSpark** (CLSK +13.88%) and its investors, the eagerly diversifying **Bitcoin** (BTC +4.17%) miner was among these titles. Fueled by the general crypto sentiment, plus an encouraging earnings report, the company's shares notched a nearly 14% price gain on the day.

## Big Gains in 2025

Just after market close Tuesday, CleanSpark published its full-year fiscal 2025 results, which it described as "transformative."

![Bitcoins depicted as if real and material currency.](https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F844735%2Fbitcoins-depicted-as-if-real-and-material-currency.jpg&w=3840&op=resize)

*Image source: Getty Images.*

That's hype, but still the company posted some encouraging numbers. The year saw it collect just over **$766 million in revenue**, which was double and then some the $379 million of the previous annual figure. Net income according to generally accepted accounting practices (GAAP) was **$364.5 million ($1.25 per share)**, quite an improvement over the 2024 loss of $145.8 million.

Although it's making a concentrated push deeper into the data center segment, CleanSpark is still heavily associated with its **Bitcoin mining** operations. The company reported it held **$1.2 billion worth of Bitcoin** at the end of fiscal 2025.

## A Good Day to Release Good News

Timing was definitely on CleanSpark's side on Wednesday, as **Bitcoin blasted higher** that morning, vaulting above the **$90,000 level** in the afternoon and (as of this writing, at least) staying there. Many crypto-heads clearly felt the leading coin (and others) were oversold and piled in, while hopes keep rising for a **Federal Reserve (Fed) rate cut** next month; such adjustments usually benefit cryptos.

While CleanSpark's results were impressive in many ways, to me, the jury is still out on its diversification efforts. Other cryptocurrency companies are making similar moves to expand their data center businesses, and so far, it's too early to judge which ones will be successful and to what extent. Given that, I think CleanSpark is a stock for **dedicated crypto bulls only**.

In a case of exquisite timing, the company released a highly encouraging financial update.

CleanSpark Stock Soars 14%: How This Bitcoin Miner's Transformative Earnings Fueled Massive Gains

Explosive growth has fueled **Hyperliquid's** rapid ascent over the past 12 months.

It's been a strange year for **Bitcoin**. After looking as if it might double in price to $200,000 in 2025, Bitcoin is now down 7% for the year. As a result, a number of other cryptocurrencies are now seriously outperforming it.

Among them is **Hyperliquid**, up 35% for the year. It now ranks among the top 12 cryptocurrencies in terms of market cap, and is drawing rave reviews from investors and traders alike.

## The next Solana?

According to Cathie Wood of Ark Invest, Hyperliquid is looking more and more like the next **Solana**. Just like Solana in its early years, Hyperliquid is experiencing rapid growth. And just like Solana, Hyperliquid is a blockchain capable of very high transaction processing speeds.

![Young investor holding smartphone and celebrating.](https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F843934%2Fyoung-smartphone-user-celebrating.jpg&w=3840&op=resize)

Since formally launching in November 2024, Hyperliquid is up nearly 1,000%. Considering that Solana is now up more than 25,000% since its launch in 2020, there's potentially plenty of upside ahead for Hyperliquid. A key to Hyperliquid's future success is its ability to maintain a dominant market position when it comes to trading cryptocurrency perpetual futures ("perps").

## Can Hyperliquid continue to outperform Bitcoin?

Of course, it's one thing to outperform Bitcoin over the course of 12 months. It's another thing entirely to outperform Bitcoin over the course of 12 years. That's the amount of time that Bitcoin has ranked among the top-performing cryptocurrencies in the world.

All of which is to say: It may still be too early to believe the hype about HYPE. It has made an impressive debut. But there's a long way to go before it can be considered a cryptocurrency that investors can buy and hold for the long haul.

Explosive growth has fueled Hyperliquid's rapid ascent over the past 12 months.

Is This the Next Solana? Hyperliquid's 35% Surge Leaves Bitcoin in the Dust

Bitcoin's price has slumped in recent months, which could make it a good time to buy.

## Current Market Conditions

Crypto prices have struggled in recent weeks as investor sentiment has soured. Lead crypto **Bitcoin** (BTC +3.77%) has dropped over 20% in the past two months. If you've been waiting on the sidelines watching prices power inexorably upwards, the current dip may well be a buying opportunity.

![Bitcoin Stock Quote](https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Fart%2Fcompanylogos%2Fmark%2FBTC.png&w=128&op=resize)

Sure, people are nervous and prices may fall further. All cryptocurrencies carry risk. But -- unlike many other cryptocurrencies -- until now, **Bitcoin has always recovered and gone on to set new highs**. It's the biggest, most established crypto with the most staying power. In uncertain times, that's pretty appealing.

![Smiling man at desk holds cellphone.](https://g.foolcdn.com/image/?url=https%3A%2F%2Fg.foolcdn.com%2Feditorial%2Fimages%2F842656%2Fhappy-stock-investor-holding-smartphone.jpg&w=3840&op=resize)

Image source: Getty Images.

## Why Bitcoin Could Perform Well Long-Term

Despite recent losses, **Bitcoin has gained over 130% in the past two years** while the **S&P 500** index has gained around 50% in the same period. One of the reasons Bitcoin has gained so much is that **institutional investors** have been adding the grandaddy of cryptocurrency to their portfolios. **Bitcoin ETFs** now hold over $120 billion**, per Coinglass, a signal of its growing legitimacy.

Another reason for Bitcoin's gains is that some view **Bitcoin as a hedge against inflation** or a form of digital gold or safe haven. Bitcoin has potential. Like gold, it doesn't rely on central banks or governments, and only a finite amount will ever be produced. However, it has yet to prove itself -- the **volatility** we've seen in recent months raises questions about how "safe" it is.

## Bitcoin Still Has to Prove Itself

Bitcoin is still a relatively new asset, and a lot of its price action is based on **speculation about its potential** rather than what it has actually achieved. It's all very well to say that it has always erased its losses, but there may come a day when it doesn't.

If you have $1,000 to invest right now, Bitcoin could have a place as part of a risk-adjusted, **balanced portfolio**. However, it won't be right for everybody. Indeed, cryptocurrency is just one of many possible investments. Don't buy just because the price has dropped; be clear about how it might perform in the coming decades.

Bitcoin's price has slumped in recent months, which could make it a good time to buy.

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