Cash levels in US equity mutual funds have fallen to 1.2% of total assets, marking the lowest point in at least 20 years, according to The Kobeissi Letter. This level is even lower than the 1.5% seen before the 2022 bear market and the 1.3% recorded in February. This metric indicates that investment managers are "all-in" on the stock market, leaving very little dry powder on the sidelines to support asset prices in the event of a downturn. The extreme positioning reflects high confidence or "FOMO" among institutional investors chasing recent market rallies. For crypto traders, this macro indicator serves as a warning of potential volatility. A lack of cash buffers in the equity market could exacerbate sell-offs if sentiment shifts, potentially leading to cross-asset correlation spikes and liquidity shocks that could spill over into digital asset markets.