According to @KobeissiLetter, the S&P 500 rallied 1.4% on rate-cut expectations and is now less than 50 points from the 6,500 mark for the first time in history, underscoring strong risk appetite in U.S. equities, source: The Kobeissi Letter on X, Aug 22, 2025. For crypto markets, this equity surge is trading-relevant because Bitcoin has exhibited heightened positive correlations with U.S. stocks in recent years, making major S&P 500 milestones pertinent to BTC and ETH sentiment, source: International Monetary Fund, Crypto Prices Move More in Sync With Stocks, Jan 2022. Monitoring S&P 500 price action around 6,500 during U.S. hours can inform risk appetite for BTC and ETH given the documented equity-crypto co-movement, source: International Monetary Fund, Jan 2022; The Kobeissi Letter on X, Aug 22, 2025.

According to @GracyBitget, Bitcoin surged to a new all-time high of $124,000, with its market capitalization surpassing Google and Amazon to become the fifth-largest asset globally (source: @GracyBitget). The S&P 500 and Nasdaq have also been closing at record highs for multiple sessions, signaling a broad-based risk-on rally across markets (source: @GracyBitget). The move is attributed to rising expectations of interest rate cuts, which historically support liquidity-sensitive assets like BTC and high-beta crypto sectors from a trading perspective (source: @GracyBitget). Traders may favor momentum-continuation setups in BTC and monitor equity-crypto correlation strength as long as rate-cut expectations remain elevated, aligning positioning with the source’s risk-on backdrop (source: @GracyBitget).

According to @KobeissiLetter, gold and Bitcoin (BTC) are rallying as sustained tariffs, elevated fiscal deficits, and rising rate-cut expectations align to create a bullish macro setup for hard assets (source: @KobeissiLetter). According to @KobeissiLetter, this combination represents the best fundamental backdrop for both gold and Bitcoin in over 12 months, supporting continued upside momentum in these markets (source: @KobeissiLetter).

According to The Kobeissi Letter, market expectations for May 2025's Core CPI inflation report have increased to 2.9%, per data from @Kalshi. This would represent the first uptick in Core CPI inflation since January 2025. The report, due before the June Federal Reserve meeting, is critical for traders as any surprise rise in inflation could delay rate cuts, potentially strengthening the US dollar and pressuring Bitcoin and other cryptocurrencies (source: The Kobeissi Letter Twitter, June 10, 2025). Elevated inflation concerns may heighten volatility in crypto markets as investors adjust risk exposure ahead of the Fed's decision.

According to Miles Deutscher, rate cut expectations for 2025 have surged to the highest level this year. This development comes as markets experience a pullback due to growth concerns. The heightened anticipation of rate cuts may provide a counterbalance, potentially supporting risk assets from experiencing sharp declines. This scenario suggests a possible stabilization in the trading environment for risk assets, as traders may anticipate monetary policy easing to mitigate economic slowdown risks.