American credit spreads just fell to levels not seen since 1998—the lowest point in over two decades. This metric matters more than you might think if you're tracking capital flows. When credit spreads compress like this, it signals investors are increasingly comfortable taking on risk. They're pricing in optimism, or at least less fear of default. The flip side? It can get crowded fast. Markets get complacent, leverage builds up, and when sentiment shifts, those spreads can snap back violently. For crypto traders watching macro cycles, this is worth monitoring. Tighter spreads usually coincide with periods where investors rotate from safe havens into riskier assets—sometimes including alternative investments like digital assets. It's not a direct cause-and-effect relationship, but historically, when credit conditions ease this much, we often see capital looking for higher yields and higher growth potential elsewhere.