According to The Kobeissi Letter, US consumers' expectations about their financial situation over the next year dropped to an all-time low in May 2025, as reported by the latest University of Michigan survey (source: The Kobeissi Letter, May 22, 2025). Sentiment levels are now even lower than during the 2008 financial crisis and the late 1970s economic downturns. This unprecedented pessimism could accelerate capital flows into alternative assets like Bitcoin and stablecoins, as investors search for hedges against economic uncertainty. Crypto traders should monitor on-chain data for increased inflows and heightened volatility, as shifts in risk appetite may drive both short-term price swings and longer-term adoption trends in digital assets.

According to The Kobeissi Letter, US consumers' expectations for their financial situation over the next year have dropped to an all-time low in May 2025, as reported by the University of Michigan survey (source: The Kobeissi Letter, May 22, 2025). This pessimism surpasses levels seen during the 2008 financial crisis and late 1970s stagflation. For traders, this heightened economic uncertainty often leads to increased volatility in traditional markets and can drive capital flows into alternative assets like Bitcoin and Ethereum. Historical data suggests that periods of low consumer confidence frequently correlate with spikes in crypto trading volumes as investors seek hedges against US dollar depreciation and stock market instability.

According to The Kobeissi Letter, a University of Michigan survey shows a record 12% of Americans now believe there is no chance the stock market will increase over the next 12 months, a figure that has tripled in just two months (source: The Kobeissi Letter, April 28, 2025). This rising pessimism, which surpasses previous survey records, signals growing bearish sentiment among retail investors. For traders, this shift could indicate increased volatility and potential downward pressure on equities as sentiment-driven selling or defensive positioning may intensify. Monitoring sentiment indicators and market breadth becomes critical for managing risk and identifying contrarian opportunities as investor outlook deteriorates.

According to The Kobeissi Letter, a recent University of Michigan (UMich) survey shows that a record 12% of US consumers see no chance of stock market gains over the next 12 months. This percentage has tripled in just two months, marking an all-time high in consumer pessimism. For traders, this surge in bearish sentiment could signal increased volatility and potential short-term downside pressure on US equities as retail investor confidence wanes. Source: The Kobeissi Letter via Twitter, April 28, 2025.