According to The Kobeissi Letter, persistent high interest rates are presenting significant challenges for President Trump as the Federal Reserve maintains its stance against rate cuts and ongoing trade deals push yields higher. The Kobeissi Letter warns that without a policy shift, the 10-year Treasury Note yield could reach 5.00% (Source: @KobeissiLetter, May 26, 2025). For cryptocurrency traders, rising yields typically strengthen the US dollar and reduce liquidity in risk assets, historically resulting in downward pressure on Bitcoin and altcoins. Monitoring Fed decisions and yield movements is critical for adjusting crypto trading strategies in the current macroeconomic environment.

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.