According to The Kobeissi Letter, the S&P 500's market capitalization relative to inflation-adjusted disposable personal income has reached a record 28x, more than doubling since 2020 and surpassing the previous high of 25x set during the 2021 meme stock surge (source: The Kobeissi Letter). This unprecedented valuation level signals heightened risk in traditional equity markets, which could influence capital flows into cryptocurrencies like BTC and ETH as alternative assets.

According to @KobeissiLetter, the S&P 500's market capitalization relative to inflation-adjusted disposable personal income has reached a historic high of 28 times. This ratio has more than doubled since 2020, surpassing the previous peak of 25 times during the 2021 meme stock surge (source: @KobeissiLetter). Such elevated equity valuations may prompt investors to seek alternatives, potentially increasing capital flows into cryptocurrencies like BTC and ETH as a hedge against overvalued traditional assets.