An overheated bond market can weigh on stocks and crypto, as high yields in safe-haven assets reduce the appeal of risk. When investors see an opportunity to earn relatively "risk-free" returns, some liquidity naturally flows out of stocks, crypto, and other risk-on assets into bonds or the money market. This is a normal phase of the market cycle: capital moves where the risk-reward profile appears more favorable. Yet these periods often present the best opportunities to accumulate before the next risk-on rally.
