According to The Kobeissi Letter, the US bond market's value has dropped to just 68% of the US stock market's value, marking the lowest ratio since the 1970s. This significant shift, with stocks outpacing bonds and the ratio halving in the past 14 years, signals a major capital rotation towards equities. For crypto investors, this trend suggests that traditional risk-off assets like bonds are losing appeal, potentially increasing investor appetite for alternative assets such as Bitcoin and Ethereum. The reduced bond market dominance may drive more institutional and retail investors toward cryptocurrencies, seeking higher returns amid declining bond yields (Source: The Kobeissi Letter, Twitter, June 10, 2025).

According to The Kobeissi Letter, the market value of the US bond market has dropped to just 68% of the stock market’s value, marking the lowest ratio since the 1970s and a halving of the share in 14 years as equities outpace bonds (Source: The Kobeissi Letter, June 10, 2025). For crypto traders, this structural capital shift signals increased risk appetite and could drive more liquidity into digital assets as traditional safe havens lose appeal. The historic outperformance of stocks over bonds may further encourage institutional rebalancing toward high-growth sectors, including cryptocurrencies, increasing market volatility and trading opportunities.

According to The Kobeissi Letter, the US 10-year Treasury yield has climbed 35 basis points in May 2025, reaching 4.50% despite ongoing efforts to stabilize the bond market. Recent trade deal announcements are causing traders to price out potential Fed rate cuts, providing Federal Reserve Chair Powell with more justification to maintain current rates. This upward movement in yields signals tighter financial conditions, which historically puts downward pressure on crypto asset prices as investors rotate into safer yield-generating instruments. Market participants should closely monitor bond yields and Fed policy shifts for their direct influence on crypto market volatility (Source: The Kobeissi Letter, Twitter, May 13, 2025).