According to Chris Harvey, a highly respected equity strategist at Wells Fargo, the latest pullback seen in the yield of investment-grade corporate bonds is “inconsistent” with an extended bear market in the important S&P 500 stock index.

The S&P 500 often serves as a proxy for the overall risk appetite in the market, and major trend changes in this market could therefore also spill over to the crypto markets.

The analyst said strong balance sheets for both corporations and at the consumer level means that the downside risk for the stock market now is smaller, with no catalysts remaining for large moves to the downside.