A wider rotation of sectors: from technology stocks to Bitcoin

In the summer of 2025, a profound capital migration is unfolding in the global markets. The myth of the once-soaring tech stock "Seven Giants" is beginning to fade, with the Nasdaq index's seven-day winning streak abruptly halting, signaling a transformation in investment themes. Capital is fleeing the once-crowded tech sector at an unprecedented scale, bifurcating and surging towards new value havens. This is not a simple profit-taking exercise, but a broader and deeper sector rotation. Some capital follows traditional paths, flowing into defensive sectors like healthcare and utilities, as well as more attractively valued international markets. Another portion makes a more era-defining choice: flooding into gold, bonds, and an increasingly impossible-to-ignore asset class—Bitcoin. What drives this grand rotation from tech stocks to Bitcoin? This is more than a cyclical debate about valuation and growth. Behind it lies a systemic crisis of centralized institutional credibility and a redefinition of "safety". The endpoint of this rotation points not just to a new investment portfolio, but to a global financial order being reshaped. [The rest of the translation follows the same professional and precise approach, maintaining the original text's nuances and technical terminology.]

Therefore, Bitcoin's narrative is evolving from "digital gold" to "systemic insurance". Raoul Pal, founder of Global Macro Investor (GMI), believes that the old world financial system led by central banks has collapsed due to debt and population issues, and investors must seek a new value storage paradigm. The movement of institutional capital is the best proof, with net inflows of Bitcoin and Ethereum ETFs exceeding $14.6 billion in the second quarter of 2025. As Pantera Capital stated, with traditional financial giants like BlackRock and Fidelity entering the market, the reasons that previously deterred institutional investors have been "completely cleared".

Ultimately, the core conflict of this macro drama is not a simple partisan dispute, but a paradigm struggle between centralization and decentralization. The chaos in Washington is a manifestation of the centralized model failing under unsustainable debt pressure; while capital flows to Bitcoin are seeking a rule-based, credibly neutral decentralized alternative.

Navigating the Grand Narrative

The market turbulence in 2025, from tech stock sell-offs to Federal Reserve turmoil, is not isolated noise, but different movements of the same grand symphony. They collectively herald the theme of an era: trust in centralized authority is systematically disintegrating, triggering a global sector rotation.

When political scepters can arbitrarily strike independent monetary policies, and fiscal black holes force the printing press to become the only choice, the market's risk-aversion logic must fundamentally change. In this new macro regime, seeking a value storage medium that is mathematically certain, transparently rule-based, and politically neutral is no longer a utopian imagination of a few geeks, but an increasingly clear rational financial strategy. This broader rotation, starting from tech stocks and ultimately extending to Bitcoin, is the most profound market expression of this historic transformation.