According to The Kobeissi Letter, US households have depleted $3 trillion in savings since August 2021, fully exhausting the $2.1 trillion in excess savings accumulated during the pandemic by Q2 2024 (source: @KobeissiLetter, May 10, 2025). This rapid drawdown in household liquidity suggests diminished consumer financial resilience, which could reduce retail investment flows into both traditional and crypto markets. Crypto traders should watch for potential shifts in market sentiment as reduced household savings may impact demand for risk assets.

According to The Kobeissi Letter, US households have depleted $3 trillion in savings since August 2021, wiping out the $2.1 trillion in excess savings accumulated from March 2020 to August 2021. This depletion, confirmed as of Q2 2024, signals reduced consumer liquidity and waning disposable income, which typically dampens risk-on asset trading. For crypto traders, this trend may result in lower retail participation and increased volatility in cryptocurrencies as traditional investment flows contract. Source: The Kobeissi Letter (May 10, 2025).