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Crypto prices came under pressure again on Friday as Treasury yields, not crude, became the macro variable traders could not ignore. Bitcoin slipped back below $69,000 after a short-lived relief rally earlier this week, while ether also traded lower, as hopes for a near-term easing in the Iran conflict faded and the US 10-year yield stayed near 4.42%.
That is the core argument The Kobeissi Letter pushed in a widely shared thread via X: the market’s center of gravity has shifted from the oil spike itself to the rates shock that follows it. “The bond market is, by far, the biggest problem for the US right now, much bigger than the energy price situation,” Adam Kobeissi wrote.
In the longer note, the firm sharpened the point further: “For weeks, markets have been fixated on oil, war headlines, and geopolitical escalation. But beneath the surface, a much larger force has been building, and it’s now beginning to take control. The bond market is now dictating the path of equities, commodities, and ultimately, policy itself.”
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The market action this week fits that thesis. On Thursday, President Donald Trump said he would pause attacks on Iran’s energy plants for 10 days, until April 6, saying talks were “going very well.” Yields initially eased on the headline, but the move did not hold.
By the end of the session, the 10-year Treasury yield had climbed to 4.415%, the highest since July, while mortgage rates had already risen to their highest since October and Fed Governor Lisa Cook said the war had shifted the balance of risks toward inflation. Futures markets had moved to price virtually no chance of a Fed cut in 2026.
And the data shows the stress. The MOVE Index, a gauge of Treasury volatility, is at 115.02, up 17.86% on the day. Kobeissi also showed a FedWatch distribution that, in Kobeissi’s reading, now points to a base case of rates staying broadly unchanged through September 2027, a dramatic reversal from late 2025, when markets were still debating how many cuts the Fed would deliver in 2026.
This is truly historic:
In just 27 days of the Iran War, the discussion has now become about Fed rate HIKES.
Just weeks ago, investors were debating how many rate cuts the Fed would implement in 2026.
Now? There’s a 48% chance of an interest rate HIKE by January 2027.
And,… https://t.co/ccQ91LLH3g pic.twitter.com/ve2drzl4Rb
— The Kobeissi Letter (@KobeissiLetter) March 26, 2026
The firm tied that repricing to a labor market it says has deteriorated even before the latest inflation shock, citing deep downward revisions to payroll data over the last three years and a February unemployment duration of 25.7 weeks.
For crypto, the message is straightforward: this is still trading as a liquidity-sensitive macro asset class. When Trump first said on March 23 that the US would postpone strikes and pursue talks, bitcoin rallied more than 5% to as high as $71,794 in New York, with altcoins also moving higher. That relief move has since unwound. By Friday, bitcoin was trading at $68,639 and ether at $2,061.81, both down on the day as the market rotated back to yields, policy risk and tighter financial conditions.
BitMEX co-founder Arthur Hayes framed the crypto angle more directly in his usual shorthand. “Almost there … If Trump invades Iran what is Buffalo Bill Bessent going to do to calm the UST market?” he wrote, referring to Treasury Secretary Scott Bessent.
Almost there …
If Trump invades Iran what is Buffalo Bill Bessent going to do to calm the UST market? pic.twitter.com/7H2qakadgT
— Arthur Hayes (@CryptoHayes) March 26, 2026
The point is not simply that war could rattle markets, but that a deeper selloff in Treasuries could force some form of response from Washington. In Hayes’ macro framework, crypto does not meaningfully recover just because geopolitical tensions ease; it recovers when bond-market stress becomes severe enough to bring liquidity back into the system, whether through Bessent, the Fed, or both.
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Kobeissi’s framework is similar. The firm argues that as yields move toward the 4.50% to 4.70% range on the 10-year, the odds of some form of policy response rise sharply because the White House has already shown it is sensitive to bond-market stress.
That leaves crypto watching the same dashboard as every macro desk: Treasury yields, rate expectations and the credibility of any de-escalation headline. If bond volatility cools, crypto assets could respond the way they did earlier this week, snapping higher on even a modest improvement in war headlines.
But if yields continue grinding upward, the market may keep treating bitcoin and the rest of crypto less as geopolitical hedges than as another expression of the global rates trade.
At press time, the total crypto market cap stood at $
Total crypto market cap chart, 1-week chart | Source: TOTAL on TradingView.com
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Featured image created with DALL.E, chart from TradingView.com