According to The Kobeissi Letter, the surge in US interest rates is primarily driven by increasing US deficit spending, currently at 7% of GDP, combined with renewed expectations for higher inflation and the Federal Reserve's 'higher for longer' policy stance (source: The Kobeissi Letter, Twitter, May 21, 2025). These macroeconomic pressures are creating a risk-off environment in traditional markets, which may prompt increased volatility and capital flows into alternative assets like Bitcoin and Ethereum. Traders should closely monitor US Treasury yields and macro policy signals, as these factors are likely to influence crypto price action and investor sentiment in the coming months.