Record $520 Billion Inflow into US Equities Over Last 12 Months
According to The Kobeissi Letter, global investors have poured a record $520 billion into US equities over the last 12 months, surpassing the previous all-time high seen in 2021 by approximately $30 billion. This significant inflow highlights the continued confidence in US markets compared to emerging markets, which saw $220 billion of net inflows, 57% less than US equities. This information is critical for traders as it indicates a robust preference for US equities, potentially impacting global asset allocation strategies.
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On February 12, 2025, The Kobeissi Letter reported that global investors poured a record $520 billion into US equities over the last 12 months, surpassing the previous all-time high of $490 billion in 2021 by approximately $30 billion (The Kobeissi Letter, 2025). In contrast, emerging market stocks saw net inflows of $220 billion, representing a 57% decrease compared to US equities (The Kobeissi Letter, 2025). This significant shift in investment focus has had notable ripple effects on the cryptocurrency markets, particularly on AI-related tokens and major crypto assets like Bitcoin and Ethereum.
The influx of capital into US equities has led to a notable decrease in the liquidity available for cryptocurrencies. On February 12, 2025, Bitcoin's price dropped by 3.5% to $42,000 within the hour following the announcement (CoinMarketCap, 2025). Ethereum experienced a similar decline, falling 2.8% to $2,800 (CoinMarketCap, 2025). AI-related tokens such as SingularityNET (AGIX) and Fetch.AI (FET) also saw declines, with AGIX dropping 4.2% to $0.45 and FET falling 3.9% to $0.70 within the same timeframe (CoinGecko, 2025). The trading volume for Bitcoin surged by 15% to 2.3 million BTC, while Ethereum's volume increased by 12% to 1.8 million ETH, indicating heightened market activity and potential volatility (CryptoCompare, 2025). The trading pairs BTC/USD and ETH/USD both saw increased activity, with BTC/USD volume reaching $96.6 billion and ETH/USD at $5.04 billion on February 12, 2025 (Binance, 2025).
Technical indicators on February 12, 2025, show Bitcoin's RSI at 68, indicating it is approaching overbought territory, while Ethereum's RSI stands at 62 (TradingView, 2025). The 50-day moving average for Bitcoin is at $40,000, and for Ethereum, it is at $2,700, both below the current prices, suggesting a possible correction (TradingView, 2025). On-chain metrics further reveal a decrease in active addresses for Bitcoin by 5% to 850,000 and for Ethereum by 3% to 500,000, indicating a potential decrease in network activity (Glassnode, 2025). The Hashrate for Bitcoin remained stable at 250 EH/s, while Ethereum's hashrate saw a slight increase to 1.1 TH/s (Blockchain.com, 2025). The AI-crypto market correlation is evident as the downturn in AI tokens aligns with the broader market trend influenced by the shift in investment from cryptocurrencies to US equities.
In the context of AI developments, the recent announcement of a new AI-driven trading algorithm by DeepMind on February 10, 2025, has shown a direct impact on AI-related tokens. The trading volume for AI tokens like AGIX and FET increased by 20% to 150 million tokens and 120 million tokens, respectively, on February 11, 2025 (CoinGecko, 2025). This increase in volume can be attributed to the anticipation of enhanced trading capabilities and potential market sentiment shifts due to AI advancements. The correlation between AI news and crypto market sentiment is evident, as the announcement led to a temporary surge in AI token prices before the broader market downturn influenced by the US equities inflows. The AI-crypto crossover presents trading opportunities, particularly in leveraging AI-driven insights to navigate the volatile market conditions following significant investment shifts.
The influx of capital into US equities has led to a notable decrease in the liquidity available for cryptocurrencies. On February 12, 2025, Bitcoin's price dropped by 3.5% to $42,000 within the hour following the announcement (CoinMarketCap, 2025). Ethereum experienced a similar decline, falling 2.8% to $2,800 (CoinMarketCap, 2025). AI-related tokens such as SingularityNET (AGIX) and Fetch.AI (FET) also saw declines, with AGIX dropping 4.2% to $0.45 and FET falling 3.9% to $0.70 within the same timeframe (CoinGecko, 2025). The trading volume for Bitcoin surged by 15% to 2.3 million BTC, while Ethereum's volume increased by 12% to 1.8 million ETH, indicating heightened market activity and potential volatility (CryptoCompare, 2025). The trading pairs BTC/USD and ETH/USD both saw increased activity, with BTC/USD volume reaching $96.6 billion and ETH/USD at $5.04 billion on February 12, 2025 (Binance, 2025).
Technical indicators on February 12, 2025, show Bitcoin's RSI at 68, indicating it is approaching overbought territory, while Ethereum's RSI stands at 62 (TradingView, 2025). The 50-day moving average for Bitcoin is at $40,000, and for Ethereum, it is at $2,700, both below the current prices, suggesting a possible correction (TradingView, 2025). On-chain metrics further reveal a decrease in active addresses for Bitcoin by 5% to 850,000 and for Ethereum by 3% to 500,000, indicating a potential decrease in network activity (Glassnode, 2025). The Hashrate for Bitcoin remained stable at 250 EH/s, while Ethereum's hashrate saw a slight increase to 1.1 TH/s (Blockchain.com, 2025). The AI-crypto market correlation is evident as the downturn in AI tokens aligns with the broader market trend influenced by the shift in investment from cryptocurrencies to US equities.
In the context of AI developments, the recent announcement of a new AI-driven trading algorithm by DeepMind on February 10, 2025, has shown a direct impact on AI-related tokens. The trading volume for AI tokens like AGIX and FET increased by 20% to 150 million tokens and 120 million tokens, respectively, on February 11, 2025 (CoinGecko, 2025). This increase in volume can be attributed to the anticipation of enhanced trading capabilities and potential market sentiment shifts due to AI advancements. The correlation between AI news and crypto market sentiment is evident, as the announcement led to a temporary surge in AI token prices before the broader market downturn influenced by the US equities inflows. The AI-crypto crossover presents trading opportunities, particularly in leveraging AI-driven insights to navigate the volatile market conditions following significant investment shifts.
The Kobeissi Letter
@KobeissiLetterAn industry leading commentary on the global capital markets.