US consumer credit just hit an all-time peak at $5.08 trillion. That's not a typo—trillion with a T.

Think about what this means for a second. Americans are carrying more debt than ever. Credit cards, auto loans, student debt—you name it, it's piling up. And when household debt climbs this high, people get cautious. Discretionary spending? Forget it. Risk appetite? Gone.

Now here's where it gets interesting for anyone watching crypto or broader risk assets. When consumers are stretched thin, they're not exactly rushing to throw money into volatile markets. Historically, high debt levels signal tighter wallets and less capital flowing into speculative plays.

But there's a flip side. If this debt bubble eventually pops—or if we see aggressive rate cuts to ease the burden—liquidity could flood back into the system. And we all know where excess liquidity tends to go.

So yeah, $5.08 trillion is a number worth keeping an eye on. It's not just about credit cards—it's about where money moves next.