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, US consumer confidence fell sharply by 8 points to 86 in April 2025, marking the weakest level since May 2020 and the fifth consecutive monthly decline (source: The Kobeissi Letter, April 30, 2025). The broad-based drop across all age groups signals a deteriorating economic outlook, which historically increases market volatility and risk-off sentiment in both traditional and crypto markets. Traders should monitor potential spillover effects on cryptocurrency prices, as weakening consumer confidence often correlates with reduced retail investment and liquidity.

According to The Kobeissi Letter, US consumer expectations about the economy have dropped to crisis levels, with consumer confidence plunging 8 points to 86 in April—the lowest since May 2020 and marking the fifth consecutive monthly decline. This broad-based fall across all age groups signals potential headwinds for risk assets, including cryptocurrencies and equities. Historically, such sharp drops in consumer sentiment often lead to increased market volatility and risk-off sentiment, which traders should closely monitor for potential short-term price corrections or heightened trading opportunities across major crypto assets (source: The Kobeissi Letter, April 30, 2025).

According to The Kobeissi Letter, the US Consumer Confidence index decreased by 7.2 points in March, reaching 92.9, which is near the lowest level since February 2021. This decline marks the fourth consecutive monthly drop, representing the longest streak since the 2008 Financial Crisis. Traders should consider the potential impact on consumer spending and economic growth, which could influence market trends.