According to The Kobeissi Letter, recent data shows inflation is rising again but at a slower pace than analysts expected. Despite this moderation, market consensus indicates the Federal Reserve is unlikely to begin rate cuts before September 2025. This "higher for longer" policy stance typically leads to tighter financial conditions, potentially restricting liquidity flows into risk assets including cryptocurrencies like BTC and ETH. Traders should monitor rate expectations closely, as extended high rates may pressure crypto market valuations and volatility. Source: @KobeissiLetter on Twitter, June 11, 2025.

According to @KobeissiLetter citing data from @Kalshi, prediction markets now expect less than 2 interest rate cuts in 2025, with the median forecast at 1.9 cuts, down sharply from a peak of 4 cuts in April. This shift has led to continued rises in yields as the 'higher for longer' monetary policy narrative returns. For crypto traders, this development could mean reduced liquidity and a potentially stronger US dollar, both of which historically pressure Bitcoin and altcoin prices. Market participants should closely monitor yield trends and Federal Reserve commentary for short- to mid-term trading strategies. (Source: @KobeissiLetter on Twitter, May 28, 2025)