Wall Street Sentiment Flashes Euphoria as Crypto Stalls

In brief

  • BofA’s risk-love indicator hit 1.4, its highest in 13 months, signaling bullish extremes.
  • Bitcoin and Ethereum remain flat over the past week despite recent equity gains.
  • September seasonality and jobs data are keeping traders cautious.

U.S. stocks are flashing signs of euphoria, contrasting with a muted crypto market as traders look to divine clues on what’s next.

The Bank of America’s Global Equity Risk-Love indicator, which provides a gauge of investor sentiment, suggests that investor positioning, volatility, and technicals in the stock market are becoming dangerously bullish. 

“BofA’s Global Equity Risk-Love indicator jumped to 1.4, its highest in 13 months,” The Kobeissi Letter wrote in a tweet on Monday. “This…

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