New Fed Financial Vulnerability Index highlights risks amid Bitcoin rally

The Federal Reserve's new Financial Vulnerability Index (FVI) suggests that while Bitcoin's current price action reflects immediate market demand, structural financial risks are accumulating. The FVI, which tracks leverage, valuation pressure, and funding risks, shows elevated levels in several categories. Unlike traditional financial-conditions indexes that react to immediate stress, the FVI captures long-term vulnerability buildup. Data indicates that financial leverage is currently in the "elevated" range, though the report notes uncertainty regarding the specific observation dates for the latest figures.