According to The Kobeissi Letter, recent U.S. trade deals are no longer reducing bond yields, and with most tariffs already paused, inflation is nearing the 2% target (source: The Kobeissi Letter, May 21, 2025). The Kobeissi Letter notes that when Trump delays or removes tariffs, treasury yields rise as recession risks are priced out by the market. This shift in yields, influenced by both Trump’s tariff policy and Fed Chair Powell’s commitment to maintaining current monetary policy, signals a risk-on sentiment that historically correlates with increased capital flows into riskier assets such as cryptocurrencies. Crypto traders should closely monitor U.S. tariff and Fed policy changes, as shifts in yields and inflation expectations directly impact Bitcoin and altcoin market volatility and trading volumes.