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Adding to this bleak picture is the depletion of post-COVID savings. The excess savings accumulated during pandemic-driven stimulus efforts are running dry, with a $72 billion deficit indicating that a substantial portion of the population is out of cash and savings. These macroeconomic pressures set the stage for amplified financial instability, especially ahead of a potential election cycle that could be influenced by promises of social handouts.
Crypto Fund Flows and Market Sentiment
Weekly data shows persistent outflows from crypto funds, with $251 million exiting the markets last week. However, some positive momentum was observed with $600 million flowing into ETFs on Friday, suggesting cautious optimism.