According to The Kobeissi Letter, recent weeks have demonstrated that when the 10-year US Treasury Note yield approaches 4.60%, the likelihood of market intervention rises significantly. The Kobeissi Letter emphasizes that both the US stock market and economy are sensitive to a potential 5% yield threshold, which could trigger volatility. For cryptocurrency traders, sustained high bond yields often lead to increased risk aversion in traditional markets, potentially driving capital flows into Bitcoin and other digital assets as alternative stores of value (source: The Kobeissi Letter, May 23, 2025). Monitoring the bond market is crucial for anticipating shifts in crypto market sentiment.

According to Eric Balchunas, recent market sentiment indicates that there is room for US Treasury yields to decrease further, which historically supports risk asset prices including Bitcoin and major altcoins (source: Eric Balchunas, Twitter, May 21, 2025). Lower yields generally reduce the opportunity cost of holding non-yielding assets like crypto, and traders should monitor the bond market as easing yields may provide bullish momentum for cryptocurrency markets over the coming weeks.