According to The Kobeissi Letter, US government interest payments declined by $13.5 billion in Q1 2025 to an annualized $1.11 trillion, the lowest since Q2 2024 and marking the first quarterly decrease since 2020 (source: The Kobeissi Letter, May 7, 2025). For crypto traders, this easing in government debt costs could reduce pressure on Treasury yields and potentially benefit risk assets like Bitcoin and Ethereum, as lowered yields may drive more capital toward alternative investments. However, the interest expense remains twice as high as previous years, maintaining long-term fiscal concerns that continue to influence crypto market volatility.

According to The Kobeissi Letter, interest payments on US national debt declined by $13.5 billion in Q1 2025, reaching an annualized $1.11 trillion, the lowest level since Q2 2024. This is the first quarterly decrease in interest expenses since 2020, signaling a significant shift in US fiscal policy dynamics (source: The Kobeissi Letter, Twitter, May 7, 2025). For crypto traders, this reduction in debt servicing costs could ease concerns about aggressive monetary tightening, potentially supporting risk asset inflows and bolstering Bitcoin and Ethereum price stability. However, the annualized interest expense remains historically high, suggesting continued macroeconomic caution may be warranted in crypto markets.