According to The Kobeissi Letter, the surge in US interest rates is primarily driven by increasing US deficit spending, currently at 7% of GDP, combined with renewed expectations for higher inflation and the Federal Reserve's 'higher for longer' policy stance (source: The Kobeissi Letter, Twitter, May 21, 2025). These macroeconomic pressures are creating a risk-off environment in traditional markets, which may prompt increased volatility and capital flows into alternative assets like Bitcoin and Ethereum. Traders should closely monitor US Treasury yields and macro policy signals, as these factors are likely to influence crypto price action and investor sentiment in the coming months.

According to The Kobeissi Letter, both Democrats and Republicans are reporting rising inflation expectations, with Democrats projecting a significant +9.6% inflation rate and Republicans now expecting +1.2% over the next 12 months (source: The Kobeissi Letter, Twitter, May 16, 2025). For cryptocurrency traders, these divergent inflation outlooks underscore heightened uncertainty around US monetary policy, which historically drives increased volatility in Bitcoin and altcoin markets. Rising inflation fears can boost demand for decentralized assets as hedges against fiat devaluation, making this a key macroeconomic signal for crypto trading strategies.

According to The Kobeissi Letter, both Democrats and Republicans are reporting sharply higher inflation expectations for the next 12 months, with Democrats anticipating +9.6% inflation and Republicans +1.2% (source: The Kobeissi Letter, Twitter, May 16, 2025). This shift in sentiment is critical for traders, as increased inflation forecasts can drive investors toward inflation-hedged assets such as Bitcoin and other cryptocurrencies. Historically, heightened inflation expectations have corresponded with increased crypto market volatility and trading volumes, as market participants seek alternative stores of value (source: Arcane Research, 2023). Traders should monitor inflation sentiment closely, as these dynamics could signal renewed bullish momentum in the crypto sector.

According to André Dragosch, PhD (@Andre_Dragosch), there is a high probability that US inflation expectations will increase towards the end of 2025, as inflation dynamics are anticipated to accelerate again. This scenario is negative for bonds, potentially pushing traditional investors to seek alternative assets such as cryptocurrencies for hedging against inflation. Traders should monitor inflation indicators closely and assess crypto market positioning, as rising inflation can fuel demand for assets like Bitcoin and Ethereum, which are often viewed as inflation hedges (source: @Andre_Dragosch, May 16, 2025).

According to @KobeissiLetter, US long-term inflation expectations have surged to 4.1%, marking the highest level since 1993. This surge is attributed to tariff front-running, which has resulted in a $300+ billion trade deficit over two months, contributing to a collapse in consumer sentiment. These developments are crucial for traders as they indicate potential stagflation, necessitating adjustments in trading strategies to mitigate risks associated with inflationary pressure and economic stagnation.

According to @KobeissiLetter, long-term US inflation expectations have surged to 4.1%, marking the highest level since 1993. This significant rise is attributed to tariff front-running, which has resulted in a $300+ billion trade deficit over two months. Additionally, consumer sentiment has sharply declined. These factors are crucial for traders monitoring inflation impacts on market conditions and potential stagflation risks.

According to The Kobeissi Letter, long-term US inflation expectations have surged to 4.1%, marking the highest level since 1993. This increase is critical for traders as it suggests potential impacts on interest rates and the value of the US dollar, which could affect cryptocurrency prices. Additionally, the $300+ billion trade deficit over two months and collapsing consumer sentiment may lead to economic conditions that influence cryptocurrency market volatility and trading strategies.

According to The Kobeissi Letter, US long-term inflation expectations have surged to 3.9%, marking the highest level since 1993. One-year inflation expectations have risen to 4.9%. This shift in expectations suggests consumers anticipate worsening economic conditions and may lead to increased borrowing. The Federal Reserve has described tariff-induced inflation as 'transitory', but traders should consider the potential for elevated inflation to influence interest rate decisions and borrowing costs.

According to The Kobeissi Letter, US one-year inflation expectations have risen significantly from approximately 2.7% to 4.3% since the onset of trade war headlines. This indicates a potential doubling from previous lows, suggesting that traders should prepare for increased volatility in the market. Furthermore, the US might experience an average tariff rate exceeding 20%, marking the highest rate in 30 years, which could have profound implications for trade-dependent sectors.

According to The Kobeissi Letter, US one-year inflation expectations have increased from approximately 2.7% to about 4.3% since the beginning of trade war headlines. This rise in inflation expectations suggests potential impacts on trading strategies as inflation could influence interest rates and currency values. The mention of a possible average tariff rate of over 20% could also affect import costs and market pricing, making it crucial for traders to monitor these developments closely.

According to The Kobeissi Letter, US consumers' 12-month inflation expectations have surged to 4.3%, marking the highest level since November 2023. This represents a significant 1.7 percentage point increase over the last three months, the largest since February 2020, and exceeds the anticipated 3.3%. Such a rise in inflation expectations could impact interest rates and influence the cryptocurrency market as investors seek assets that hedge against inflation.