According to The Kobeissi Letter, short interest on the median S&P 500 stock has surged to approximately 2.3%, marking the highest level in seven years. Year-to-date, short interest as a percentage of shares outstanding has risen by 35%, a move comparable to the early stages of the 2008 Financial Crisis, though from a lower baseline (source: The Kobeissi Letter, Twitter, May 21, 2025). This heightened bearish sentiment in traditional equities could increase volatility and risk-off flows into the cryptocurrency market, as traders seek alternative assets during periods of elevated equity market stress.