According to The Kobeissi Letter, a net 19% of US banks tightened lending standards for large and medium-sized firms in Q1 2025, the highest level since Q3 2023. Additionally, a net 16% of banks raised lending standards for small businesses. This tightening signals reduced liquidity and increased risk aversion in traditional finance, which could drive more capital flow into cryptocurrencies as investors seek alternative assets. Crypto traders should closely monitor these developments as tighter credit conditions often correlate with heightened volatility and opportunity in digital asset markets (Source: The Kobeissi Letter, Twitter, May 14, 2025).