Bank of America: Last week saw a $2.3 billion inflow into the crypto market, reaching a record high in total size.

BlockBeats News, May 27th, Bank of America's Chief Strategy Officer Michael Hartnett was as sharp as ever in his latest report: If you were to spend $100 per second, it would take 2248 years to match the US government's $7.1 trillion spending in the past year. With the "Big Beautiful Bill" accelerating its way (destined to "break the budget"), Hartnett tactically still believes that a "rise in US Treasury yields and a fall in the US dollar" (i.e., 30-year US Treasury> 5% + US Dollar Index <100) will be bearish for risk assets.

Last week, the cryptocurrency market saw an inflow of $2.3 billion, reaching a record high in total size; while US tech stocks experienced an epic outflow of $6.8 billion; high-yield bonds saw an inflow of $9.8 billion in the past 4 weeks (peak since November 2023).

Hartnett pointed out sharply: "If long-term US Treasury bonds (and the US dollar) collapse, US stocks will suffer a disaster." A US Treasury yield above 5% is extremely destructive to the highly financialized US economy. When the 5-year US Treasury yield exceeds 3.25%, the US's $1.2 trillion interest payments will deteriorate rapidly; if it remains below 3.25%, the US's debt costs are expected to stabilize.