According to @simplykashif, Bank of America’s latest Global Fund Manager Survey identifies an AI stock bubble as the biggest current market risk, surpassing geopolitics, inflation, and rate cuts. Source: @simplykashif; Bank of America Global Fund Manager Survey. For crypto traders, this elevates cross-asset risk because BTC and ETH have shown positive correlations with tech-heavy equities during drawdowns in 2022–2023, implying potential spillovers if AI leaders correct. Source: Kaiko Research; Coin Metrics State of the Network. Key risk gauges to track include VIX volatility from Cboe and market breadth in AI-linked megacaps, which have historically coincided with crypto beta moves during equity stress. Source: Cboe Global Markets; Nasdaq, Inc.; Kaiko Research.

According to Edward Dowd, US treasury yields closed flat following the Moody’s downgrade, signaling limited immediate impact on fixed income markets. Dowd highlights that over the next 12 months, yields are expected to decrease as economic realities catch up, with the housing sector leading a downturn and the current AI stock bubble deflating. This environment of lower yields and a potential stock market correction may drive increased demand for alternative assets, including cryptocurrencies, as investors seek yield and diversification amid traditional market volatility (source: Edward Dowd on Twitter, May 19, 2025).