The increasing risk-taking fever towards cryptocurrencies and leveraged ETFs is growing day by day with funds flowing into them.

November 23, 2024 16:25 JST
Leveraged products for individual stocks had a record-breaking scale of 86 billion in transactions this week.
It is also pointed out that it is difficult to sustain momentum and trading at the current levels for a long period.
The frenzy of buying everything that started with Donald Trump's victory in the U.S. presidential election is calming down in areas such as stocks and corporate bonds. However, among the speculative trends on Wall Street, the appetite for risk-taking is only getting stronger day by day.
During this past week when fluctuations in the S&P 500 and nasdaq 100 indices finally began to settle down, active trading and significant price movements in cryptocurrencies (virtual currencies) and leveraged exchange-traded funds (ETFs) became a hot topic.

Thanks to the solid economy and Trump's future administration's election promises, it has become a noteworthy year for risk assets. Regardless of how long the US financial authorities take to cut interest rates, it is a new frothy scene.

Against this market backdrop, brokerage accounts have swelled in time for the year-end shopping season. However, if this trend continues, it may lead to excessive enthusiasm for gambling, causing even market professionals to feel bewildered.
Jones Trading's Chief Market Strategist, Michael O'Rourke, analyzed, "This kind of excitement is a speculative spread comparable to the peak of 2000." He mentioned, "It's difficult to sustain such momentum and trading at such levels for an extended period".