According to Omkar Godbole (@godbole17), the US real yield has risen above 2% as of June 1, 2025 (source: Twitter). Historically, a higher real yield increases the attractiveness of US Treasury securities, potentially leading to outflows from risk assets like cryptocurrencies. Traders should note that rising real yields often correlate with downward pressure on Bitcoin and major altcoins, as investors seek safer, yield-bearing assets (source: Bloomberg, historical market data). Monitoring US real yield trends is critical for anticipating volatility in the crypto market.

According to The Kobeissi Letter, the US 30-year bond yield has reached 5.15% for the first time since October 2023, a level not seen outside of that month since July 2007 (Source: The Kobeissi Letter, May 22, 2025). This significant spike in long-term yields reflects increasing investor concern over persistent inflation and the Federal Reserve's reluctance to implement rate cuts. For cryptocurrency traders, this higher yield environment could prompt further outflows from risk assets like Bitcoin and Ethereum into safer government bonds, potentially increasing volatility in the crypto markets. Traders should closely monitor any policy response or intervention signals from political figures, as rapid changes could impact both bond and crypto market sentiment.

According to Mihir (@RhythmicAnalyst), the Dollar Index (DXY) has reversed its four-month downtrend, rebounding off the S4 support level on the monthly chart. If DXY approaches the critical 103 level, pressure is expected on the cryptocurrency market as historically, a stronger dollar often leads to capital outflows from risk assets, including crypto. Traders should monitor DXY's approach to 103 for potential bearish signals across major cryptocurrencies. Source: Mihir (@RhythmicAnalyst) on Twitter, May 12, 2025.