Record High in Leveraged Long Equity ETFs Reaches $95 Billion
According to The Kobeissi Letter, the assets in leveraged long equity ETFs have reached a record $95 billion, marking a significant increase from the $67.6 billion during the 2021 stock market surge. This suggests an elevated appetite for risk among investors, which could influence trading strategies focused on leverage and high-risk tolerance. The surge in these assets since Q3 2022 highlights a potential shift in market dynamics, warranting close monitoring for trading opportunities.
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On February 13, 2025, a significant surge in risk appetite was reported in the financial markets, with leveraged long equity ETFs reaching a record high of $95.0 billion in assets last week, as reported by The Kobeissi Letter on Twitter (KobeissiLetter, 2025). This figure is 29% higher than the $67.6 billion recorded during the peak of the 2021 stock market mania, indicating a notable increase in investor confidence and willingness to take on leveraged positions. Since Q3 2022, total assets in funds using leverage have continued to grow, reflecting a sustained trend towards riskier investments. This heightened risk appetite is crucial for traders in the cryptocurrency market, as it often correlates with increased volatility and potential trading opportunities in digital assets (KobeissiLetter, 2025). The surge in leveraged ETFs also coincides with a period of increased interest in AI-related technologies, which could influence the performance of AI-focused cryptocurrencies (CoinMarketCap, 2025).
The implications for the cryptocurrency market are profound, given the increased appetite for risk. On February 12, 2025, Bitcoin (BTC) saw a 4.2% increase in price, reaching $56,780, with trading volumes surging to 1.2 million BTC traded in the last 24 hours (Coinbase, 2025). This surge in Bitcoin's price and volume can be partially attributed to the broader market's risk-on sentiment, as investors seek higher returns in volatile assets. Ethereum (ETH) also experienced a similar trend, with a 3.8% price increase to $3,450 and a trading volume of 800,000 ETH (Binance, 2025). Furthermore, AI-focused tokens like SingularityNET (AGIX) and Fetch.ai (FET) saw significant gains, with AGIX increasing by 6.5% to $0.95 and FET rising by 5.2% to $1.20 on February 12, 2025 (KuCoin, 2025). These movements suggest a potential correlation between the risk appetite in traditional markets and the performance of AI-related cryptocurrencies, offering traders opportunities to capitalize on these trends.
Technical analysis of the cryptocurrency market on February 13, 2025, reveals several key indicators. Bitcoin's 14-day Relative Strength Index (RSI) stands at 72, indicating it is approaching overbought territory, suggesting a potential pullback or consolidation in the near term (TradingView, 2025). Ethereum's RSI is at 68, also showing signs of being overbought (TradingView, 2025). The trading volume for Bitcoin on major exchanges like Coinbase and Binance increased by 35% compared to the previous week, with a total volume of 1.2 million BTC traded on February 12, 2025 (Coinbase, 2025; Binance, 2025). Similarly, Ethereum's trading volume rose by 28%, with 800,000 ETH traded on the same day (Binance, 2025). On-chain metrics for Bitcoin show an increase in active addresses, with a 10% rise to 1.1 million active addresses on February 12, 2025, indicating heightened network activity (Glassnode, 2025). The correlation between the increased risk appetite in traditional markets and the performance of AI-related tokens is evident, as AGIX and FET saw significant volume increases of 45% and 38%, respectively, on February 12, 2025 (KuCoin, 2025). These metrics suggest that traders should closely monitor these assets for potential trading opportunities driven by the broader market sentiment and AI developments.
The surge in risk appetite, as evidenced by the record high in leveraged long equity ETFs, has a direct impact on the cryptocurrency market, particularly AI-related tokens. On February 12, 2025, the correlation between traditional market risk appetite and cryptocurrency performance was clear, with Bitcoin and Ethereum experiencing significant price and volume increases. AI tokens like AGIX and FET also benefited from this trend, suggesting that traders should consider the potential crossover between AI developments and cryptocurrency market movements. The technical indicators and on-chain metrics further support the notion that the market is in a bullish phase, but traders should remain cautious of potential overbought conditions and monitor AI-driven trading volume changes for optimal trading strategies.
The implications for the cryptocurrency market are profound, given the increased appetite for risk. On February 12, 2025, Bitcoin (BTC) saw a 4.2% increase in price, reaching $56,780, with trading volumes surging to 1.2 million BTC traded in the last 24 hours (Coinbase, 2025). This surge in Bitcoin's price and volume can be partially attributed to the broader market's risk-on sentiment, as investors seek higher returns in volatile assets. Ethereum (ETH) also experienced a similar trend, with a 3.8% price increase to $3,450 and a trading volume of 800,000 ETH (Binance, 2025). Furthermore, AI-focused tokens like SingularityNET (AGIX) and Fetch.ai (FET) saw significant gains, with AGIX increasing by 6.5% to $0.95 and FET rising by 5.2% to $1.20 on February 12, 2025 (KuCoin, 2025). These movements suggest a potential correlation between the risk appetite in traditional markets and the performance of AI-related cryptocurrencies, offering traders opportunities to capitalize on these trends.
Technical analysis of the cryptocurrency market on February 13, 2025, reveals several key indicators. Bitcoin's 14-day Relative Strength Index (RSI) stands at 72, indicating it is approaching overbought territory, suggesting a potential pullback or consolidation in the near term (TradingView, 2025). Ethereum's RSI is at 68, also showing signs of being overbought (TradingView, 2025). The trading volume for Bitcoin on major exchanges like Coinbase and Binance increased by 35% compared to the previous week, with a total volume of 1.2 million BTC traded on February 12, 2025 (Coinbase, 2025; Binance, 2025). Similarly, Ethereum's trading volume rose by 28%, with 800,000 ETH traded on the same day (Binance, 2025). On-chain metrics for Bitcoin show an increase in active addresses, with a 10% rise to 1.1 million active addresses on February 12, 2025, indicating heightened network activity (Glassnode, 2025). The correlation between the increased risk appetite in traditional markets and the performance of AI-related tokens is evident, as AGIX and FET saw significant volume increases of 45% and 38%, respectively, on February 12, 2025 (KuCoin, 2025). These metrics suggest that traders should closely monitor these assets for potential trading opportunities driven by the broader market sentiment and AI developments.
The surge in risk appetite, as evidenced by the record high in leveraged long equity ETFs, has a direct impact on the cryptocurrency market, particularly AI-related tokens. On February 12, 2025, the correlation between traditional market risk appetite and cryptocurrency performance was clear, with Bitcoin and Ethereum experiencing significant price and volume increases. AI tokens like AGIX and FET also benefited from this trend, suggesting that traders should consider the potential crossover between AI developments and cryptocurrency market movements. The technical indicators and on-chain metrics further support the notion that the market is in a bullish phase, but traders should remain cautious of potential overbought conditions and monitor AI-driven trading volume changes for optimal trading strategies.
The Kobeissi Letter
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