Looking at it from every angle, we're starting the year with a U.S. stock market sitting at historically elevated valuations. Bank of America's take? The numbers don't lie—equities are looking pricey across the board as 2025 kicks off.

For traders watching both traditional and crypto markets, this matters. When legacy markets are stretched, capital flows and risk appetite dynamics shift. Higher valuations in equities often correlate with how institutional money moves across asset classes, including digital assets. The broader implication: market cycles at this valuation level typically influence sentiment across multiple sectors, from stocks to cryptocurrencies.

Keep an eye on how these traditional market signals play out—they're often early indicators of what's coming in the crypto space.