According to The Kobeissi Letter, retail investors have purchased stocks at a record-breaking rate in 2025, with equity ETF net inflows reaching approximately $122 billion year-to-date. Goldman Sachs data reveals that since mid-March, individual investor inflows have doubled even as equity markets experienced a sell-off. This surge in retail participation signals heightened risk appetite and liquidity, potentially influencing correlated assets such as cryptocurrencies, which often respond to shifts in traditional equity flows (source: The Kobeissi Letter, May 19, 2025; Goldman Sachs). Crypto traders should monitor retail flows as a leading indicator for cross-asset sentiment and volatility.

According to The Kobeissi Letter, hedge funds engaged in the most aggressive selling of global stocks since 2013, as revealed by Goldman Sachs data. This significant selloff, surpassing even the 2020 pandemic levels, emphasizes a sharp reduction in exposure to global equities. Traders should note this trend as a potential signal of market volatility and consider adjusting their portfolios accordingly.