According to Compounding Quality on Twitter, the average holding period of a stock has dropped to historically low levels as of 2025 (source: @QCompounding, May 25, 2025). This accelerated trading turnover signals increased volatility in traditional equity markets, which often correlates with higher risk appetites and short-term trading behavior among investors. For cryptocurrency traders, this trend may indicate a broader shift toward risk-on sentiment, potentially driving more capital flows and trading activity into volatile crypto assets as traders seek faster returns. Monitoring these equity market dynamics is crucial for anticipating liquidity shifts and sentiment changes across both stocks and cryptocurrencies.

According to The Kobeissi Letter, foreign investors have injected approximately $1.5 billion into US equity funds over the past month, marking the highest net inflow since February 2025. This reversal follows a significant outflow of $5 billion at the start of April 2025, which was the largest in at least five years (source: The Kobeissi Letter, Twitter, May 14, 2025). This renewed capital inflow signals increased global confidence in US equities, which historically correlates with reduced volatility in the crypto market as institutional investors rebalance portfolios. Traders should watch for potential shifts in BTC and ETH price action, as US stock market stability often leads to decreased crypto hedging flows.

According to The Kobeissi Letter, US technology stocks have reached their lowest relative price performance against global technology stocks in approximately 18 months, dropping to 1.6 points. Simultaneously, the ratio of US tech stocks relative to US non-tech stocks has declined to 1.5 points, also marking an 18-month low (source: The Kobeissi Letter, May 6, 2025). This dual downturn signals increased caution for traders, as weakening relative strength may indicate a shift in capital allocation away from US technology equities toward other sectors or regions. Active traders should closely monitor momentum indicators and sector rotation patterns to identify potential short-term selling opportunities or shifts in leadership within the broader equity market.

According to The Kobeissi Letter, US technology stocks are underperforming in 2025, with their relative price performance versus global technology stocks dropping to 1.6 points, the lowest level in approximately 18 months. Additionally, the ratio of US tech stocks compared to US non-tech stocks has declined to 1.5 points, also marking a significant low. This trend signals a shift in market momentum away from US tech equities, suggesting traders should closely monitor sector rotation, reassess portfolio allocations, and consider risk mitigation strategies as capital flows may increasingly favor global tech or domestic non-tech sectors (source: The Kobeissi Letter, Twitter, May 6, 2025).