According to The Kobeissi Letter, the 30-year US Treasury note yield reached 5.09% for the first time since November 2023, following four Federal Reserve rate hikes last year (source: The Kobeissi Letter, May 21, 2025). This spike is significant as the last comparable yield level occurred in July 2007. For crypto traders, rising long-term yields often signal tighter financial conditions and can lead to increased market volatility as liquidity shifts out of risk assets like cryptocurrencies and into traditional fixed-income products. Monitoring the bond market is crucial, as further yield increases could pressure crypto prices and impact trading strategies.

According to Cas Abbé, rising inflation negatively impacts risk-on assets, as the FED typically hikes rates in response to inflation. This scenario creates a challenging environment for investments in risk-on assets, highlighting the importance of monitoring inflation trends and FED policies for trading strategies.

According to Richard Teng, Bitcoin has historically shown resilience to macroeconomic shifts, exemplified by its recovery after dipping below $20,000 amid 2022's Fed rate hikes.