According to The Kobeissi Letter, the ISM Services PMI new orders index dropped by 5.9 points in May 2025 to 46.4, marking its second-lowest level since 2020 and, excluding 2020, the lowest since the 2008 Financial Crisis (source: The Kobeissi Letter, Twitter, June 5, 2025). This sharp deterioration in both manufacturing and services demand heightens concerns about a broader economic slowdown, directly impacting investor risk sentiment. Cryptocurrency markets tend to react strongly to such traditional economic stress signals, historically leading to increased volatility and potential liquidity outflows from risk assets as macroeconomic uncertainty escalates.

According to The Kobeissi Letter, Congressional Budget Office (CBO) projections have consistently underestimated the long-term growth of US federal debt. In 2001, the CBO forecasted that federal debt held by the public would decline to $0.9 trillion by 2011, but actual debt surged to $10.4 trillion—a miss of $9.5 trillion (source: The Kobeissi Letter, May 29, 2025). This persistent underestimation signals growing fiscal uncertainty, which is driving increased demand for cryptocurrencies and decentralized assets as hedges against US dollar devaluation. Traders should monitor these macroeconomic trends, as rising federal debt levels historically correlate with increased volatility and bullish sentiment in the Bitcoin and altcoin markets.

According to Michaël van de Poppe (@CryptoMichNL), Bitcoin made a notable bounce from its recent point of interest area, suggesting strong buying support at lower levels. However, he points out that ongoing macroeconomic uncertainty remains a key risk factor for short-term price action. The latest weekly candle lacks significant bullish momentum, indicating that traders should be prepared for potential consolidation or a minor pullback before any sustained upward movement resumes. This analysis highlights critical levels for day traders and swing traders looking to capitalize on Bitcoin’s volatility in the current macro environment (Source: Twitter/@CryptoMichNL, May 24, 2025).

According to Glassnode, despite the ongoing restructuring of global trade relations creating an uncertain macroeconomic environment, Bitcoin has surged to over $80,000. This highlights the remarkable performance of hard assets, with Gold also reaching an all-time high of $3,300. Traders are advised to consider these trends in their strategies, as the strong performance of these assets suggests a hedge against economic uncertainty.

According to Matt Hougan, Bitcoin has shown a 24.3% return since Election Day, outperforming gold, which returned 13.9%, and major indices like SPY and QQQ, which fell by 2.9% and 5.1%, respectively. Despite the sideways movement of Bitcoin due to macroeconomic uncertainties, the cryptocurrency has demonstrated significant progress over this period.