According to The Kobeissi Letter, the global stock market capitalization to global GDP ratio has reached 117%, marking the second-highest level in history (source: The Kobeissi Letter, June 14, 2025). This ratio increased by 27% over the past five years and is only below the 2022 record. Since 2008, global market cap has grown at twice the pace of global GDP, signaling elevated equity valuations. For crypto traders, this heightened ratio suggests increased capital allocation into risk assets, setting the stage for potential liquidity spillover into cryptocurrencies like BTC and ETH as investors seek alternative high-return opportunities in an overheated market (source: The Kobeissi Letter, June 14, 2025).

According to The Kobeissi Letter, market participants anticipate potential intervention from US Treasury Secretary Bessent as the 10-year Treasury yield approaches 5%, with traditional trade deals no longer effectively lowering yields (source: The Kobeissi Letter, May 21, 2025). If the 10Y yield continues to climb, current equity market valuations could become unsustainable, creating increased volatility across risk assets, including cryptocurrencies. Crypto traders should closely monitor US Treasury actions and yield movements, as rising yields historically pressure digital assets by increasing the opportunity cost of holding non-yielding crypto positions.

According to Evan (@StockMKTNewz), the combined market value of the top 10 largest stocks in the world has climbed to $20.64 trillion, up from $19.12 trillion last week (source: Twitter, May 18, 2025). This significant growth in equity valuations highlights increased investor appetite for mega-cap stocks and could influence capital allocation trends across asset classes, including cryptocurrencies. Traders should monitor whether this shift in traditional stock market capitalization impacts liquidity and risk appetite in the crypto sector, as capital flows may rotate between equities and digital assets.