Large amounts of capital are fleeing the United States — and the markets can smell an impending crisis.

Markets are flashing more and more warnings of incoming financial turbulence. The biggest foreign holders of U.S. Treasuries — Japan, the UK, and China — have slashed their positions to levels not seen since the 2008 financial crisis (especially China, whose holdings have dropped to around $682–688 billion, the lowest since 2008, while Japan and the UK have been mixed but overall foreign demand remains high in spots).

This widespread selling of Treasuries is driving yields higher, making borrowing more expensive and tightening global liquidity — which in turn crushes risk appetite everywhere.

History follows a familiar pattern: the bond market gets hammered first, then stocks take the hit, and finally crypto suffers the sharpest, most brutal drawdown. $BTC