Buffett Indicator Hits 220%, Surpasses Dot-Com Bubble Peak

- The Warren Buffett Indicator climbs to a historic 220%, outpacing the Dot-Com Bubble’s 190%. - Low bond yields push investors into equities, amplifying valuation concerns. The U.S. stock market has reached unprecedented levels of overvaluation, with the Warren Buffett Indicator surging to 220%. This measure, which compares total stock market value to the Gross Domestic Product (GDP), now surpasses the 190% peak recorded during the Dot-Com Bubble. On September 21, 2025, Cryptopolitan reported that this surge raises alarms over a potential market imbalance. This striking 220% figure is 68.63% above the indicator’s long-term historical average. Experts attribute this disparity to structural and macroeconomic factors, pointing specifically to the persistently low yield on 10-Year Treasury bonds. The current yield is 4.24%, a rate significantly below the 50-year average of 5.83% and far from the 6.5% yield of the Dot-Com era. With bond market returns offering limited appeal, investors are channeling funds into stocks, driving equity valuations sky-high. This reallocation is a key reason behind the stock market’s current premium relative to GDP. Analysts suggest this trend could sustain as long as bond yields remain uncompetitive. However, the unprecedented Buffett Indicator reading highlights an increasingly wide gulf between investor behavior and underlying economic fundamentals. The indicator’s historic ascent draws attention to broader market dynamics in an era of lasting low-interest rates. Analysts in the report point out that subdued bond yields are central to the current pricing environment. However, questions about the trend's long-term sustainability linger. According to CoinMarketCap, as of 12:00 UTC on September 21, Ethereum (ETH) was trading at $1,746, while its 24-hour trading volume had dipped by 3.2%.