According to The Kobeissi Letter, the US 10-year Treasury note yield surged above 4.60% last week, with bond auction demand weakening and interest rate cuts being delayed. The new tax bill is expected to increase the US deficit by over $3.8 trillion in the next ten years (source: The Kobeissi Letter, May 25, 2025). These developments signal higher borrowing costs and persistent inflationary risks, which historically drive increased interest in cryptocurrencies like Bitcoin as alternative stores of value. Crypto traders should monitor yield movements and fiscal trends, as rising deficits and delayed rate cuts tend to boost digital asset demand when fiat currency stability appears threatened.

According to The Kobeissi Letter, President Trump publicly criticized Federal Reserve Chair Jerome Powell for refusing to cut interest rates, labeling Powell as 'not fair to America.' This stance signals potential political pressure on the Fed and could lead to increased market volatility. For crypto traders, persistent high interest rates may continue to suppress risk appetite, limiting upward momentum for Bitcoin and altcoins in the near term as investors favor yield-bearing assets. Source: The Kobeissi Letter on Twitter, May 13, 2025.

According to Mihir (@RhythmicAnalyst), the Federal Reserve's 2% core PCE inflation target is historically extreme, given that the average annual change in the US Core PCE Price Index has been 3.24% from 1960 to 2025, with peaks as high as 10.22% in 1975 and lows of 0.63%. For traders, this historical context signals that the Fed may be intentionally delaying rate cuts to ensure inflation is sustainably below its stated target. This cautious policy stance impacts risk sentiment in crypto and traditional markets, making rate-sensitive trades in Bitcoin, Ethereum, and tech stocks potentially more volatile until clear Fed guidance emerges (Source: Mihir/@RhythmicAnalyst, Twitter, May 1, 2025).