According to @KobeissiLetter citing @Kalshi, prediction markets now expect fewer than two US interest rate cuts in 2025, with the median forecast at 1.9 cuts, sharply down from a peak of four cuts in April. This shift in expectations has driven yields higher, reinforcing the 'higher for longer' rate narrative. For crypto traders, rising yields and reduced rate cut forecasts often signal a risk-off environment, historically leading to downward pressure on Bitcoin and altcoin prices as liquidity tightens and investors seek safer assets. This trend may challenge bullish momentum in the crypto market in the near term. Source: @KobeissiLetter on Twitter, May 28, 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)

According to The Kobeissi Letter, following the recent US-China trade deal, market participants now anticipate only two interest rate cuts by the Federal Reserve in 2025, as reported by Kalshi. This adjustment in rate cut expectations signals a potentially stronger US dollar environment, which could limit upward momentum for major cryptocurrencies such as Bitcoin and Ethereum due to reduced liquidity and risk appetite. Traders should monitor macroeconomic cues closely, as shifts in monetary policy projections directly affect crypto market volatility and capital flows (source: @KobeissiLetter, @Kalshi).