Crypto and stocks surged in 2024: The cryptocurrency market surged by 120% in 2024, with Bitcoin reaching almost 105,000 USD, thanks to low interest rates and strong earnings. U.S. Stock indices, including the S&P 500 and Dow Jones, also saw gains over 20%, driven by the same favorable conditions.

Zandi warns of potential crashes: Moody’s Chief Economist, Mark Zandi, cautions that both the crypto and stock markets are significantly overvalued. He highlights the risk of a crash in 2025, pointing out that these assets are currently supported by transient bullish factors rather than sustainable market fundamentals.

Rising bond yields a critical factor: Zandi sees rising bond yields as a trigger for market downturns, with bond volatility linked to the U.S. Public debt, now over 36.2 trillion USD. This excessive debt and the possibility of increased yields could prompt a shift away from overvalued crypto and stocks.