According to The Kobeissi Letter, US households have depleted $3 trillion in savings since August 2021, wiping out the $2.1 trillion in excess savings accumulated from March 2020 to August 2021. This depletion, confirmed as of Q2 2024, signals reduced consumer liquidity and waning disposable income, which typically dampens risk-on asset trading. For crypto traders, this trend may result in lower retail participation and increased volatility in cryptocurrencies as traditional investment flows contract. Source: The Kobeissi Letter (May 10, 2025).