According to Compounding Quality, the latest analysis of leverage ratios demonstrates a notable shift in market risk profiles across major financial institutions as of May 2025. The report highlights that higher leverage ratios, particularly among large banks, can signal increased systemic risk, which historically correlates with higher volatility in the cryptocurrency market due to interconnected financial exposures (source: Compounding Quality, Twitter, May 18, 2025). Crypto traders should monitor these leverage trends closely, as elevated leverage in traditional finance often precedes liquidity tightening and potential price swings in digital assets. This data-driven perspective is crucial for risk management and informed trading decisions, especially as regulatory scrutiny on leverage intensifies in both traditional and digital markets.