According to The Kobeissi Letter, 8.0% of student loans transitioned into serious delinquency in Q1 2025, the highest rate since 2020, sharply up from 0.8% in Q4 2024 following the end of the student loan relief period (source: @KobeissiLetter, May 15, 2025). This spike in delinquencies is raising concerns about consumer credit health and could drive increased risk aversion in traditional markets. As investors seek alternative assets amid credit stress, the cryptocurrency market may see heightened interest as a hedge against traditional financial instability.

According to The Kobeissi Letter, Warren Buffett's Berkshire Hathaway increased its cash reserves to a record $347.7 billion in Q1 2025, signaling an ongoing risk-off approach. This substantial cash buildup, as reported on May 3, 2025, may indicate broader market caution and potential volatility ahead. Crypto traders should note that such large-scale cash accumulation by a leading institutional investor often precedes shifts in market sentiment and liquidity, which could impact digital asset flows and price action (source: @KobeissiLetter on Twitter).