According to @KobeissiLetter citing data from @Kalshi, prediction markets now expect less than 2 interest rate cuts in 2025, with the median forecast at 1.9 cuts, down sharply from a peak of 4 cuts in April. This shift has led to continued rises in yields as the 'higher for longer' monetary policy narrative returns. For crypto traders, this development could mean reduced liquidity and a potentially stronger US dollar, both of which historically pressure Bitcoin and altcoin prices. Market participants should closely monitor yield trends and Federal Reserve commentary for short- to mid-term trading strategies. (Source: @KobeissiLetter on Twitter, May 28, 2025)

According to The Kobeissi Letter, Japan's recent bond auctions are experiencing weaker demand, leading to falling bond prices and rising yields as the Japanese economy slows and uncertainty increases (source: The Kobeissi Letter, May 25, 2025). This uptrend in Japanese government bond yields is accelerating, heightening financial instability risks. For crypto traders, increased volatility in traditional finance often translates to higher inflows into cryptocurrencies as investors seek alternative assets, making this development critical for short-term trading strategies.

According to The Kobeissi Letter, Japan's real GDP contracted by -0.7% in Q1 2025, significantly worse than the expected -0.3%, marking the first decline since Q1 2024. The contraction is attributed to the combined effects of new tariffs and rising yields, signaling further macroeconomic weakness ahead. For crypto traders, this economic downturn in Japan may contribute to increased volatility in the yen and affect global risk appetite, potentially influencing Bitcoin and digital asset flows as investors seek safe havens or adjust exposure to Asia-Pacific markets (source: The Kobeissi Letter, May 25, 2025).

According to The Kobeissi Letter, recent 'trade deal' headlines have lost their suppressive effect on yields, with yields now rising due to decreased recession fears and heightened inflation expectations (source: @KobeissiLetter, May 23, 2025). This trend signals a potential return of trade war dynamics, which could increase volatility in global markets. For cryptocurrency traders, rising yields and renewed trade tensions often correlate with risk-off sentiment and increased crypto market volatility, making it critical to monitor these macroeconomic shifts for informed trading decisions.

According to The Kobeissi Letter, as the S&P 500 surpassed the 5900 mark, they initiated short positions due to observed strength in yields. Their target of 5750 was reached, marking the pre-market low in S&P 500 futures today, and the trade was closed for a significant gain (Source: The Kobeissi Letter, Twitter, May 23, 2025). The sharp drop in the S&P 500 and rising yields often pressure risk assets, including cryptocurrencies, as traders may rotate out of high-volatility assets like Bitcoin and Ethereum into safer instruments. This could signal increased volatility and selling pressure across the crypto market in the short term.

According to The Kobeissi Letter, US stocks have extended declines with the Dow Jones Industrial Average falling over 2% following a very weak 20-year US Treasury bond auction, pushing yields higher (source: The Kobeissi Letter, May 21, 2025). Rising yields and sharp equity declines often trigger increased volatility in cryptocurrency markets as investors seek alternative assets and liquidity. Crypto traders should closely monitor risk sentiment shifts and potential capital flows from stocks to digital assets as market uncertainty grows.

According to The Kobeissi Letter, higher yields are generally viewed as bearish for the stock market because rising borrowing costs slow down economic activity, especially during periods of uncertainty. The Kobeissi Letter further notes that ongoing debates over the US tax bill and increasing deficit spending add to market uncertainty. For crypto traders, this heightened volatility in traditional markets often leads to increased interest in digital assets as alternative investments, potentially impacting Bitcoin and Ethereum trading volumes and price trends (source: @KobeissiLetter, May 21, 2025).

According to Michaël van de Poppe, Bitcoin is consolidating amid a challenging macroeconomic climate with a strong Dollar and rising yields, causing continued suffering in altcoin prices.