After 18 months of strong pump for encryption concept stocks, they have entered a consolidation phase. Analysts say that institutional participation is insufficient.

[Block Rhythm] On August 20, a certain company released the latest report on social media stating that the encryption concept stocks have entered a consolidation phase after a strong rise for 18 months. Over the past 18 months, the encryption concept stock index has significantly outperformed Bitcoin, but with the recent pullback in stock prices of leading companies such as a certain company, a certain trading platform, and another company, the index has begun to show signs of a pullback. The cooling of buying interest after the listing of a certain company further confirms the lack of momentum in the new stock market.

Analyst Markus Thielen stated that the current level of institutional participation is insufficient, which may reflect seasonal weakness during the summer. In the absence of significant encryption IPO support, prices may further consolidate in the short term.