According to The Kobeissi Letter, bond yields surged sharply ahead of the April 9th tariff pause as the unwinding of the basis trade accelerated. Former President Trump implemented a 90-day tariff pause in direct response to the spike in rates, and on April 10th, he acknowledged monitoring the bond market closely. This interest rate-driven policy move heightened volatility across global markets, with significant spillover effects on cryptocurrency trading as risk sentiment shifted rapidly. Crypto traders observed increased correlations between digital assets and traditional markets during this period, highlighting the need for active risk management strategies. (Source: The Kobeissi Letter, May 23, 2025)

According to The Kobeissi Letter, on April 9th, it was revealed that the bond market has become Trump's immediate economic focus. Despite weeks of assurances that there would be no tariff delay, a sudden break in the bond market led to a 90-day tariff pause within just 12 hours (source: The Kobeissi Letter, May 21, 2025). This rapid policy shift highlights heightened sensitivity to macroeconomic pressures, suggesting increased volatility across traditional and crypto markets. Traders should monitor US bond market developments closely, as policy pivots like this can trigger risk-on or risk-off reactions in Bitcoin, Ethereum, and major altcoins.

According to The Kobeissi Letter, on April 9th it became clear that the bond market is President Trump’s top near-term economic priority. Despite stating for weeks that there would be no delay in tariffs, a sharp decline in the bond market was followed by a 90-day pause in tariff implementation within 12 hours (source: The Kobeissi Letter, May 21, 2025). For crypto traders, this rapid policy shift highlights the strong relationship between US macroeconomic policy decisions and digital asset volatility. Market participants should closely monitor US bond market reactions as they can directly influence global risk sentiment and liquidity, impacting Bitcoin and altcoin price action.