According to The Kobeissi Letter, new data from the St. Louis Fed shows that the percentage of lowest-income Americans aged 20 to 64 with credit card debt 90+ days past due surged to approximately 16% in Q1 2025, marking the highest level in 22 years. This figure has increased by about 6 percentage points over the past three years (source: The Kobeissi Letter, May 13, 2025). For cryptocurrency traders, this spike in delinquencies signals heightened financial stress in the US consumer sector, which could drive increased interest in decentralized finance (DeFi) solutions and stablecoins as alternatives to traditional credit. Historically, rising credit delinquencies have coincided with increased crypto market activity as investors seek hedges against systemic risk. Traders should monitor further macroeconomic reports for potential volatility triggers in both traditional and crypto markets.

According to The Kobeissi Letter, new serious delinquencies in US credit card debt reached approximately 7% in Q4 2024, marking the highest level in the past 14 years. This figure has doubled over the last three years as inflationary pressures continue to affect American consumers. Traders should monitor this trend as it may impact consumer spending and overall economic stability.