According to The Kobeissi Letter, the US 2-Year Treasury Note yield has risen above 4% after market close, signaling a significant shift in risk-free interest rates (source: @KobeissiLetter, May 21, 2025). This development often prompts traders to reallocate capital away from risk assets like cryptocurrencies toward safer, higher-yielding bonds. Historically, spikes in Treasury yields have led to short-term volatility and downside pressure in the crypto market as liquidity tightens and investor appetite for risk decreases. Crypto traders should closely monitor bond market dynamics and potential capital outflows from digital assets, as elevated yields could impact Bitcoin and altcoin price action in the near term.

According to The Kobeissi Letter, new home prices in China’s 70 major cities dropped 4.6% year-over-year in April 2025, while existing home prices declined 6.8%, deepening a nearly four-year downtrend. Property investment also declined by 10.3%. This persistent weakness in China’s real estate sector is prompting traders to monitor potential capital outflows and heightened volatility in Asian financial markets, factors that could increase interest in cryptocurrencies as alternative investment vehicles and stores of value. Source: The Kobeissi Letter.

According to @RhythmicAnalyst, Japanese 10-year bond yields, which began a correction at the end of March 2025, have now resumed their upward trend after bouncing off a key support line (source: Twitter, May 12, 2025). This rebound presents a potential risk to Japanese equities and global liquidity, factors that traders should monitor closely. Rising yields could trigger capital outflows, impact risk sentiment, and indirectly influence cryptocurrency markets through changes in global liquidity dynamics.