Bitcoin Surges, Ethereum Nears $4000 As Treasury Yields Pop, Dollar Weakens — 'Deficit Spending Crisis Is Much Worse Than You Think' (edited)

Capital markets commentator The Kobeissi Letter hinted at a global shift away from fiat currencies, as cryptocurrencies surged alongside a weakening U.S. dollar

What happened: In an X post on Monday, The Kobeissi Letter underlined the strong bullish momentum in top cryptocurrencies, such as Bitcoin BTC/USD and Ethereum ETH/USD.

While Bitcoin recently surpassed $120,000 for the first time in history, the second-largest cryptocurrency was swiftly moving toward reclaiming $4,000 after a gap of over eight months.

The post also noted gold's spike above $3,400 per troy ounce and only 3% away from a record high.

The Kobeissi Letter then drew attention to the benchmark 10-year U.S. Treasury yield, predicting it to break past 4.5% in the days to come. Typically, rising bond yields suggest expectations of higher inflation and reduced confidence in the government's ability to manage debt.

The 10% plunge in dollar’s value this year, the worst since 1973, was also noted.

"The deficit spending crisis is much worse than you think," The Kobeissi Letter said. "Position accordingly, or you will be left behind."

Why It Matters: The U.S. economy is facing a potential crisis as the national debt, currently exceeding $36.2 trillion, continues to rise, sparking concerns among economists and analysts.

Concerns have exacerbated following the passage of the “One Big, Beautiful Bill Act,” which is backed by President Donald Trump. Billionaire investor Ray Dalio projected that the new budget, with annual spending of $7 trillion against $5 trillion in revenue, will balloon the national debt to a staggering $425,000 per American family over the next decade.

Price Action: At the time of writing, ETH was exchanging hands at $3,706.92, down 1.70% in the last 24 hours, according to data from Benzinga Pro. The coin has rallied over 62% in the last month.

BTC traded at $117,014.45, down 1.26% in the last 24 hours, but up over 14% over the last month.

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