According to The Kobeissi Letter, risk appetite has been declining since February 20th, with a consistent downturn in risk-on trades. However, at 2:10 PM ET, Reuters reported a resurgence in the Ukraine minerals deal, causing a brief increase in risk appetite. This development is crucial for traders monitoring risk assets as it indicates potential short-term volatility and opportunities in the market.

According to The Kobeissi Letter, Bitcoin experienced a significant drop of $2,000 in just 25 minutes, which led to a $70 billion reduction in the overall cryptocurrency market cap. This rapid decline highlights the impact of risk appetite on near-term price fluctuations. When investor risk appetite diminishes, risky assets like Bitcoin are prone to 'flash crashes.'

According to The Kobeissi Letter, risk appetite rebounded sharply following an announcement, just after the Fear & Greed Index hit 15, indicating Extreme Fear. This marked its lowest level since the 2022 bear market. Consequently, a massive reversal was observed in the S&P 500.

According to The Kobeissi Letter, traders should prepare for significant market swings in both directions as Goldman's risk appetite indicator is currently crashing. This downturn suggests a shift in risk appetite that could impact key technical levels, making it crucial for traders to reassess their strategies and market positions.

According to The Kobeissi Letter, US Consumer Confidence fell by 7 points in February, reaching 98.3, its lowest level since 2022. This marks the most significant monthly decline since August 2021, as reported by the Conference Board. The decreasing consumer confidence could impact cryptocurrency market volatility as investors reassess risk appetite.

According to Miles Deutscher, while the S&P 500 is showing positive performance, cryptocurrency markets are struggling. This divergence suggests that traditional equities are currently favored by investors, potentially due to perceived stability amid ongoing market conditions. Traders might consider this trend when allocating assets, as the strength of the S&P 500 could indicate a shift in risk appetite away from cryptocurrencies.

According to The Kobeissi Letter, as volatility returns to equity markets, risky assets like Bitcoin are experiencing a pullback. The tweet highlights that historic levels of risk appetite were seen in 2024 and early 2025, but a reduction in risk appetite is now leading to less liquidity in the crypto markets. This pattern of reduced liquidity following a pullback in risk appetite has been observed before, suggesting a potential trend for traders to monitor.

According to Miles Deutscher, altcoin dominance by trading volume has rebounded above 50% as of last week, marking a notable increase in market interest towards altcoins. This suggests a growing risk appetite among traders, potentially leading to increased volatility and opportunities for short-term gains in altcoin markets. Source: Miles Deutscher on Twitter.

According to Michaël van de Poppe, investors should focus on adjusting their risk exposure based on portfolio size and individual risk appetite, rather than adhering to traditional market cycles. Van de Poppe warns that closing positions based on the perceived timing within a market cycle could be a significant mistake, as he believes these cycles are evolving and may not exist in their known forms anymore. This perspective suggests a shift towards more flexible trading strategies that prioritize personal risk assessment over time-based actions. (Source: Michaël van de Poppe's Twitter)

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.

According to The Kobeissi Letter, leveraged long equity ETFs have reached a record $95.0 billion, marking a significant increase compared to the $67.6 billion during the 2021 stock market surge. This indicates a 29% rise in risk appetite since Q3 2022, impacting trading strategies in equity markets.