According to The Kobeissi Letter, China's Caixin Manufacturing PMI dropped by 2.1 points to 48.3 in May 2025, its lowest since September 2022 and the first contraction since September 2024. This index, which tracks small and medium-sized non-state businesses, signals weakening economic activity and increased risk sentiment in Asian markets (source: The Kobeissi Letter, June 3, 2025). Crypto traders should monitor potential capital outflows from Asian equities and increased volatility in major cryptocurrencies, as risk-off sentiment could drive investors toward stablecoins or alternative assets.

According to The Kobeissi Letter, Japanese equity funds experienced a record $11.8 billion in net outflows last week, pushing the 4-week moving average to an all-time high of $4.0 billion. This selloff is attributed to investor concerns over rising long-dated Japanese government bond yields (source: The Kobeissi Letter, June 2, 2025). For cryptocurrency traders, these large-scale equity outflows signal potential capital rotation, with increased liquidity possibly flowing into alternative assets like Bitcoin and Ethereum as investors seek higher returns and hedge against traditional market volatility.

According to The Kobeissi Letter, the US 2-Year Treasury Note yield has risen above 4% after market close, signaling a significant shift in risk-free interest rates (source: @KobeissiLetter, May 21, 2025). This development often prompts traders to reallocate capital away from risk assets like cryptocurrencies toward safer, higher-yielding bonds. Historically, spikes in Treasury yields have led to short-term volatility and downside pressure in the crypto market as liquidity tightens and investor appetite for risk decreases. Crypto traders should closely monitor bond market dynamics and potential capital outflows from digital assets, as elevated yields could impact Bitcoin and altcoin price action in the near term.

According to The Kobeissi Letter, new home prices in China’s 70 major cities dropped 4.6% year-over-year in April 2025, while existing home prices declined 6.8%, deepening a nearly four-year downtrend. Property investment also declined by 10.3%. This persistent weakness in China’s real estate sector is prompting traders to monitor potential capital outflows and heightened volatility in Asian financial markets, factors that could increase interest in cryptocurrencies as alternative investment vehicles and stores of value. Source: The Kobeissi Letter.

According to @RhythmicAnalyst, Japanese 10-year bond yields, which began a correction at the end of March 2025, have now resumed their upward trend after bouncing off a key support line (source: Twitter, May 12, 2025). This rebound presents a potential risk to Japanese equities and global liquidity, factors that traders should monitor closely. Rising yields could trigger capital outflows, impact risk sentiment, and indirectly influence cryptocurrency markets through changes in global liquidity dynamics.