According to The Kobeissi Letter, the 10-year US Treasury yield has surged above 4.50% as expectations for Federal Reserve rate cuts are postponed even further (Source: @KobeissiLetter, June 6, 2025). This move brings yields to within 8 basis points of those seen during the weak 20-year bond auction on May 21, 2025. Elevated yields typically pressure risk assets, including cryptocurrencies, as higher yields attract capital away from digital assets and increase the opportunity cost of holding non-yielding tokens. Crypto market participants should monitor bond yield trends closely, as further upward movement may trigger volatility in major coins and DeFi protocols.

According to Cas Abbé, the latest FOMC meeting was less bullish than anticipated for markets. Chair Powell noted that while inflation has decreased notably, persistent concerns remain due to ongoing tariff wars, which could drive inflation higher in the future (source: Cas Abbé on Twitter, May 8, 2025). This cautious outlook from the Federal Reserve signals potential volatility and a lack of immediate bullish momentum for both traditional and crypto markets. Crypto traders should closely monitor inflation data and Fed statements, as sustained inflation concerns could delay potential rate cuts, impacting crypto price movements and liquidity.