According to The Kobeissi Letter, market participants anticipate potential intervention from US Treasury Secretary Bessent as the 10-year Treasury yield approaches 5%, with traditional trade deals no longer effectively lowering yields (source: The Kobeissi Letter, May 21, 2025). If the 10Y yield continues to climb, current equity market valuations could become unsustainable, creating increased volatility across risk assets, including cryptocurrencies. Crypto traders should closely monitor US Treasury actions and yield movements, as rising yields historically pressure digital assets by increasing the opportunity cost of holding non-yielding crypto positions.

According to The Kobeissi Letter, US Treasury Secretary Bessent may attempt an intervention as the 10-year Treasury yield nears 5%, with trade deals no longer exerting downward pressure on yields (source: The Kobeissi Letter, May 21, 2025). Current equity market valuations could become unsustainable if yields hit this level, which may trigger increased volatility and risk-off sentiment. For cryptocurrency traders, a spike in Treasury yields typically strengthens the US dollar and dampens risk appetite, historically leading to short-term price corrections across major digital assets. Monitoring yield movements is critical for crypto market participants as macroeconomic shifts could directly impact liquidity and capital flows into crypto markets.