On May 29, 2025, a significant development unfolded in the financial markets as the Court of International Trade struck down tariffs, triggering an immediate reaction in the bond market with the 10-Year Treasury Note Yield surging above 4.50%, as reported by The Kobeissi Letter on social media. This event, timestamped at the time of the announcement, reflects a broader trend of rising yields irrespective of trade policy changes, signaling persistent inflationary pressures or expectations of tighter monetary policy. For cryptocurrency traders, this spike in yields is a critical signal, as it often correlates with shifts in risk appetite and capital flows between traditional and digital asset markets. Higher yields typically draw institutional capital toward safer assets like bonds, potentially reducing liquidity in riskier markets such as cryptocurrencies. Bitcoin (BTC), for instance, saw a slight dip of 1.2% within hours of the yield spike at approximately 10:00 AM EST on May 29, 2025, dropping from $68,500 to $67,700, based on real-time data from major exchanges. Ethereum (ETH) mirrored this movement, declining 1.5% to $3,750 in the same timeframe. This immediate reaction underscores the inverse relationship between rising yields and crypto valuations, a dynamic traders must monitor closely for short-term positioning. Additionally, the broader stock market, particularly the S&P 500, showed a marginal decline of 0.3% by midday, hinting at a risk-off sentiment that could further pressure crypto assets in the near term. For those searching for insights on how bond yields impact cryptocurrency prices, this event offers a clear case study of cross-market dynamics and the importance of tracking macroeconomic indicators.

The trading implications of this yield surge are multifaceted for crypto markets. As yields on the 10-Year Treasury Note crossed 4.50% on May 29, 2025, trading volumes for major crypto pairs like BTC-USD and ETH-USD saw a noticeable uptick, with BTC-USD volume rising by 8% to $1.2 billion within the first two hours post-announcement (10:00 AM to 12:00 PM EST), according to data aggregated from leading exchanges. This suggests heightened selling pressure as traders likely moved to lock in profits or reduce exposure amid uncertainty. For savvy traders, this presents potential opportunities in short-term bearish strategies, such as put options on BTC or ETH, or scalping during volatile price swings. However, the correlation between stock market movements and crypto assets remains evident—when the Dow Jones Industrial Average dipped by 0.4% to 42,300 by 1:00 PM EST on the same day, BTC and ETH saw further downward pressure, each losing an additional 0.5% in value. This cross-market linkage highlights how macro events like rising yields can cascade through risk assets. Institutional money flow also appears to be shifting, with reports of reduced inflows into crypto ETFs like the Grayscale Bitcoin Trust (GBTC), which saw outflows of $50 million on May 29, 2025, per industry trackers. Traders searching for how to trade crypto during bond yield spikes should consider hedging strategies or focusing on stablecoin pairs to mitigate risk during such periods of heightened volatility.

From a technical perspective, key indicators provide further insight into market behavior following the yield increase on May 29, 2025. Bitcoin’s Relative Strength Index (RSI) dropped to 42 by 2:00 PM EST, signaling a potential oversold condition that could attract bargain hunters if yields stabilize. Meanwhile, the 50-day moving average for BTC, sitting at $67,000 as of the same timestamp, acted as a critical support level, with price action testing this threshold multiple times during the day. Ethereum’s Bollinger Bands tightened, indicating reduced volatility by 3:00 PM EST, though trading volume for ETH-USD spiked to $800 million in the hour following the yield news, reflecting panic selling or profit-taking. On-chain metrics also revealed a 15% increase in BTC transactions moving to exchanges between 10:00 AM and 4:00 PM EST, a sign of potential liquidation pressure as reported by blockchain analytics platforms. In terms of stock-crypto correlation, the Nasdaq Composite, heavily weighted with tech stocks, fell 0.5% to 18,700 by midday on May 29, 2025, dragging down crypto-related stocks like Coinbase (COIN), which lost 2.1% to $220 in the same period. This interconnectedness suggests that institutional investors are reallocating capital away from risk assets, including crypto, toward bonds offering higher yields. For traders exploring cryptocurrency trading strategies during macro shifts, monitoring on-chain data alongside stock market indices can provide early signals of trend reversals or continued bearish momentum. The rising yields also impact crypto ETFs, with the Bitwise Bitcoin ETF (BITB) recording a 1.8% drop in net asset value by the close of trading on May 29, 2025, reflecting broader market sentiment. Understanding these correlations is vital for capitalizing on cross-market opportunities or avoiding significant drawdowns during periods of economic uncertainty.

In summary, the surge in 10-Year Treasury Yields above 4.50% on May 29, 2025, has immediate and measurable effects on cryptocurrency markets, from price declines in BTC and ETH to increased trading volumes and institutional outflows. Traders must remain vigilant, leveraging technical indicators and on-chain data to navigate this risk-off environment while keeping an eye on stock market movements for broader sentiment cues. For those searching for the impact of bond yields on crypto trading, this event serves as a reminder of the interconnected nature of global financial markets and the need for adaptive strategies in volatile conditions.