According to The Kobeissi Letter, persistent high interest rates are presenting significant challenges for President Trump as the Federal Reserve maintains its stance against rate cuts and ongoing trade deals push yields higher. The Kobeissi Letter warns that without a policy shift, the 10-year Treasury Note yield could reach 5.00% (Source: @KobeissiLetter, May 26, 2025). For cryptocurrency traders, rising yields typically strengthen the US dollar and reduce liquidity in risk assets, historically resulting in downward pressure on Bitcoin and altcoins. Monitoring Fed decisions and yield movements is critical for adjusting crypto trading strategies in the current macroeconomic environment.

According to The Kobeissi Letter, President Trump has postponed the implementation of a 50% tariff on EU imports until July 9, 2025, resulting in an immediate spike in the 10-year US Treasury yield above 4.55% (source: @KobeissiLetter, May 25, 2025). This bond market reaction signals that traditional trade policy interventions are losing effectiveness in containing market volatility. For crypto traders, the rise in yields often corresponds with a stronger dollar and reduced risk appetite, potentially leading to short-term downward pressure on major cryptocurrencies such as Bitcoin and Ethereum. Monitoring US bond yields is crucial for anticipating crypto price swings during periods of macroeconomic uncertainty.

According to The Kobeissi Letter, renewed trade war tensions emerged as President Trump announced potential 25% tariffs on Apple and 50% tariffs on EU imports starting June 1st (source: The Kobeissi Letter, May 23, 2025). This coincided with the US 10-Year Treasury Note yield surpassing 4.60%, triggering sharp pullbacks as recession fears intensified. For crypto traders, this development is significant: rising yields and trade uncertainty often drive capital into alternative assets like Bitcoin and Ethereum, increasing volatility and potential inflows to the crypto market. Monitoring risk sentiment and capital rotation is essential for trading strategies in the coming weeks.

According to The Kobeissi Letter, the US 10-year Treasury yield has climbed 35 basis points in May 2025, reaching 4.50% despite ongoing efforts to stabilize the bond market. Recent trade deal announcements are causing traders to price out potential Fed rate cuts, providing Federal Reserve Chair Powell with more justification to maintain current rates. This upward movement in yields signals tighter financial conditions, which historically puts downward pressure on crypto asset prices as investors rotate into safer yield-generating instruments. Market participants should closely monitor bond yields and Fed policy shifts for their direct influence on crypto market volatility (Source: The Kobeissi Letter, Twitter, May 13, 2025).

According to The Kobeissi Letter, despite the announcement of a US-China trade deal and a 90-day pause on tariffs, the 10-year Treasury yield is approaching 4.50% even as inflation data trends downward (source: @KobeissiLetter, May 11, 2025). Persistent high yields signal that interest rates remain elevated, which continues to pressure both traditional markets and cryptocurrencies. Crypto traders should monitor bond yields closely, as sustained high rates can reduce risk appetite and liquidity in digital asset markets. The expectation for rate cuts remains unmet, increasing volatility and downside risk across crypto assets.