According to The Kobeissi Letter, US housing affordability has reached a historic low, with the inflation-adjusted Case Shiller Home Price Index set to surpass 300 for the first time ever. Nominal home prices have soared 143% since 2011, based on data from Reventure. This unprecedented surge in housing costs could drive increased interest in alternative investments like Bitcoin and Ethereum as investors seek hedges against real estate inflation. Traders should monitor potential capital rotation from traditional property markets to digital assets, as these macroeconomic shifts may influence crypto market inflows. (Source: The Kobeissi Letter, May 23, 2025; Reventure)

According to The Kobeissi Letter, as the US-China trade war intensified, former President Trump expected Federal Reserve Chair Powell to cut interest rates, aiming to stabilize the bond market while implementing higher tariffs. However, with the Fed remaining hesitant to reduce rates, bond yields have continued to rise, forcing Trump to alter his economic strategy (source: The Kobeissi Letter, May 23, 2025). This shift in US monetary policy and rising yields could increase volatility in both traditional and crypto markets, as investors seek alternative assets like Bitcoin and Ethereum to hedge against uncertain macroeconomic conditions.