According to The Kobeissi Letter, US leveraged ETF assets have increased by $30 billion, a 40% jump in just one month, bringing the total to approximately $105 billion (source: The Kobeissi Letter, May 15, 2025). This sharp rebound follows a $50 billion decline from January to April 2025. Traders should note that such rapid inflows into leveraged ETFs typically signal increased market risk appetite, which often correlates with higher volatility and trading volume in both equities and cryptocurrencies. Historically, shifts in leveraged ETF flows have preceded significant moves in the crypto market, making this a key metric for active crypto traders to monitor.

According to Stock Talk (@stocktalkweekly), if the US can reduce tariffs to 10% for China and the EU, the prolonged uncertainty around trade negotiations could dissipate, leading to market stabilization and renewed momentum. This development is significant for cryptocurrency traders, as reduced global trade tensions generally correlate with increased risk appetite and capital flows into digital assets, according to recent market correlation analyses by Coin Metrics (source: @stocktalkweekly, Coin Metrics). Lower tariffs may also result in improved economic growth forecasts, potentially increasing institutional interest in major cryptocurrencies like Bitcoin and Ethereum.

According to The Kobeissi Letter, the Federal Reserve’s balance sheet has declined by $17 billion over the past month, reaching $6.7 trillion, which is the lowest level since April 2020. Since April 2022, the Fed has reduced its balance sheet by $2.3 trillion, or 25%. This ongoing quantitative tightening directly impacts crypto market liquidity, as reduced liquidity in traditional markets often translates to lower risk appetite for digital assets like Bitcoin and Ethereum. Traders should monitor these macroeconomic shifts, as tightening financial conditions historically correlate with increased crypto market volatility and potential downward price pressure. (Source: The Kobeissi Letter on Twitter, May 9, 2025)

According to The Kobeissi Letter, US Treasury funds received a record $19 billion in net inflows last week, surpassing the previous high of $14 billion during the 2020 pandemic (source: @KobeissiLetter, April 26, 2025). The 4-week moving average now stands at $7 billion, the highest since March 2023. This surge in demand for US Treasuries signals increased investor preference for safe-haven assets, potentially putting downward pressure on bond yields. For crypto traders, this shift may indicate reduced risk appetite in traditional markets, which historically correlates with short-term volatility in Bitcoin and altcoins as capital temporarily flows out of risk assets (source: @KobeissiLetter).