According to The Kobeissi Letter, US households have depleted $3 trillion in savings since August 2021, wiping out the $2.1 trillion in excess savings accumulated from March 2020 to August 2021. This depletion, confirmed as of Q2 2024, signals reduced consumer liquidity and waning disposable income, which typically dampens risk-on asset trading. For crypto traders, this trend may result in lower retail participation and increased volatility in cryptocurrencies as traditional investment flows contract. Source: The Kobeissi Letter (May 10, 2025).

According to Miles Deutscher, the current decline in retail crypto market participation might indicate a strategic entry point. As posts mentioning specific cryptocurrencies reach August 2023 levels, Deutscher suggests that the best time to position oneself is when the crowd has dissipated. This positioning isn't limited to buying; it includes networking within the crypto community, building a personal or business brand, and developing new products or conducting thorough research. This insight highlights potential market opportunities when interest wanes, allowing for strategic positioning for future gains.