According to The Kobeissi Letter, the 1-year US credit default swaps (CDS) have climbed to 52 basis points, marking levels close to the highest seen since 2023. Excluding the 2023 debt ceiling crisis, this is the most expensive US default insurance in 12 years, reflecting heightened concerns over US government credit risk (source: The Kobeissi Letter, May 31, 2025). For crypto traders, increased US default risk typically drives demand for decentralized assets like Bitcoin and stablecoins as investors hedge against traditional market instability. This trend could boost crypto market volumes and volatility in the near term as macro uncertainty rises.