According to The Kobeissi Letter, President Trump has postponed the implementation of a 50% tariff on EU imports until July 9, 2025, resulting in an immediate spike in the 10-year US Treasury yield above 4.55% (source: @KobeissiLetter, May 25, 2025). This bond market reaction signals that traditional trade policy interventions are losing effectiveness in containing market volatility. For crypto traders, the rise in yields often corresponds with a stronger dollar and reduced risk appetite, potentially leading to short-term downward pressure on major cryptocurrencies such as Bitcoin and Ethereum. Monitoring US bond yields is crucial for anticipating crypto price swings during periods of macroeconomic uncertainty.

According to The Kobeissi Letter, recent 'trade deal' headlines have lost their suppressive effect on yields, with yields now rising due to decreased recession fears and heightened inflation expectations (source: @KobeissiLetter, May 23, 2025). This trend signals a potential return of trade war dynamics, which could increase volatility in global markets. For cryptocurrency traders, rising yields and renewed trade tensions often correlate with risk-off sentiment and increased crypto market volatility, making it critical to monitor these macroeconomic shifts for informed trading decisions.

According to Stack Hodler on Twitter, Japan's actions in the global sovereign debt markets are coinciding with Bitcoin pushing toward new all-time highs, approaching six figures per coin (source: @stackhodler, May 20, 2025). This correlation is crucial for traders, as Japanese monetary policy shifts have contributed to increased volatility in global bond markets, prompting investors to seek crypto assets like Bitcoin as alternative stores of value. As a result, Bitcoin's price momentum is accelerating in tandem with sovereign debt instability, signaling potential entry and exit points for crypto traders watching macroeconomic trends.

According to The Kobeissi Letter, the US Treasury yield curve has steepened to approximately 50 basis points, marking the highest level since February 2022 and ending a record 793-day streak of inversion. The spread between 10-year and 2-year Treasuries has remained positive for eight consecutive months, signaling changing macroeconomic conditions. For cryptocurrency traders, a steepening yield curve often reflects expectations of stronger economic growth and rising inflation, which can influence Bitcoin and altcoin volatility as investors reassess risk assets versus traditional safe havens. This shift may drive renewed institutional interest in crypto as a hedge against inflation and currency fluctuations. (Source: The Kobeissi Letter, May 6, 2025)