Major stock markets are hitting overdrive these days. Trading volumes just smashed record highs, and you can feel the heat across the entire market.

Here's the thing though—regulators are starting to sweat. When you see turnover numbers spike that dramatically, it usually means either euphoria or panic is in the air. Or both at the same time.

This kind of activity always sends ripples beyond just equity traders. Market overheating in traditional finance tends to shift investor sentiment everywhere, including crypto. When stocks are running wild, people either get more risk-hungry across all assets, or they suddenly want to park money in "safer" places. Either way, it changes the game.

The regulatory concern is interesting too. They're probably watching whether this is healthy price discovery or just noise. Worth keeping tabs on how this shakes out.