The ratio of the total market value of the US stock market to the size of the economy has already surpassed 224%, reaching a record high. How outrageous is this number? In comparison, during the tech bubble in 2000, the pre-2008 financial crisis, and the market peak in 2021, it never reached this level.

The problem is that such high valuations can no longer be absorbed by economic fundamentals. GDP growth cannot keep up with the expansion of the stock market. What happens in the end? History shows that asset prices usually need to fall sharply to restore balance.

Most painfully, the growth rate of this indicator has recently accelerated. Judging by the steepness of the curve, the bubble is inflating more and more aggressively. Many economists use this indicator as a warning sign of recession. For the crypto market, these macroeconomic changes are worth paying attention to.