According to The Kobeissi Letter, the 11 largest Asian countries have increased their holdings of US equities and bonds by $4.7 trillion since the 1997 Asian Financial Crisis, bringing total Asian investments in US assets to $7.5 trillion (source: The Kobeissi Letter, May 30, 2025). The majority of these holdings are concentrated in Japan. For crypto traders, the rising allocation to US assets by Asian sovereigns and institutions signals sustained confidence in US financial markets, potentially supporting a strong dollar environment that can impact Bitcoin and other digital asset flows. This trend highlights the need for traders to monitor cross-border capital movements for implications on crypto volatility and liquidity.

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 50% EU tariffs until July 9th, resulting in the US 10-year Treasury Note yield surging back above 4.55% almost instantly (source: The Kobeissi Letter on X, May 25, 2025). This rapid yield increase signals that trade policy delays are no longer containing bond market volatility. For crypto traders, the renewed rise in bond yields typically strengthens the US dollar and may pressure risk assets such as Bitcoin and Ethereum in the short term. Traders should monitor crypto price action closely in response to bond yield movements as macro volatility increases.

According to Eric Balchunas, the long-term chart of the long dollar ETF $UUP shows that concerns about the US dollar losing its reserve currency status or reaching historic lows are exaggerated, as the ETF has not experienced significant declines (source: Eric Balchunas on Twitter, May 24, 2025). For crypto traders, this analysis indicates continued dollar strength, which can limit bullish momentum for Bitcoin and altcoins, as a strong dollar typically suppresses risk asset inflows.

According to The Kobeissi Letter, President Trump continues to urge Fed Chair Jerome Powell to cut interest rates as US bond yields rise, highlighting that both Trump and investor Bessent are closely monitoring the bond market. Despite Trump’s calls, Powell has refused to lower rates, a stance that was also evident in April 2025. For crypto traders, persistent high yields and the Fed’s reluctance to cut rates could sustain dollar strength and increase market volatility. Historically, rising yields tend to pressure risk assets, including Bitcoin and altcoins, as capital flows favor traditional safe havens over crypto assets (source: The Kobeissi Letter, May 21, 2025).

According to @StockMKTNewz, Barclays has updated its forecast regarding Federal Reserve rate cuts, now predicting only one rate cut in December 2025 instead of two cuts previously expected, with the first originally anticipated in July 2025 (source: Twitter). This revision signals a more cautious approach by the Fed, which could limit liquidity inflows into risk assets like Bitcoin and other cryptocurrencies. Traders should note that delayed rate cuts may sustain a stronger US dollar, potentially applying downward pressure on crypto prices in the near term. Monitoring Fed policy updates remains crucial for crypto market participants seeking to capitalize on macro-driven price movements.

According to Santiment (@santimentfeed), the upcoming FOMC meeting led by Jerome Powell is a pivotal event for both crypto and stock markets, as traders await the decision on potential interest rate changes. A rate hike could trigger short-term volatility and selling pressure in both Bitcoin and altcoins, as higher rates typically strengthen the US dollar and reduce speculative capital in risk assets (source: insights.santiment.net). Conversely, a rate hold or cut may fuel bullish momentum, encouraging inflows into crypto markets and driving up prices, given recent trends in risk-on asset rallies after dovish central bank signals (source: Santiment Twitter). Market participants are closely monitoring not only the decision but also forward guidance, as policy tone shifts can significantly impact crypto price action and trading strategies.

According to Omkar Godbole, the USD/JPY pair is showing significant movements influenced by macroeconomic factors such as interest rate differentials and geopolitical tensions. Traders should monitor the recent breakout levels as they could indicate a potential bullish trend continuation. Godbole suggests that the Japanese Yen's weakness, coupled with the US Dollar's strength, may offer trading opportunities in the forex market. [Source: Twitter @godbole17]

According to The Kobeissi Letter, as trade war concerns have intensified, the demand for gold has increased. A Bank of America survey reveals that 58% of fund managers believe gold will perform best under trade war conditions, despite the expectation of a stronger US Dollar. This indicates a potential rise in gold prices, as fund managers anticipate further growth in its demand amidst global economic tensions.