According to The Kobeissi Letter, low-rated US corporations issued less than $1 billion in high-yield bonds in April 2025, marking the lowest monthly total in at least four years, while leveraged loan issuances surged to $13 billion during the same period (source: The Kobeissi Letter, May 19, 2025). This significant shift from bond financing to leveraged loans signals growing risk aversion in traditional credit markets and tightening liquidity, which historically increases volatility in both equity and cryptocurrency markets. Crypto traders should monitor these developments closely, as reduced risk appetite in traditional markets often drives institutional flows and volatility in digital assets.