#Cryptocurrency prices are under pressure.#
Hot Topic Overview
Overview
The cryptocurrency market experienced a bull run in the last quarter of 2024, but the recent upward trend in global government bond yields is putting pressure on cryptocurrency prices. The US 10-year Treasury yield has risen to 4.70%, nearing a multi-year high, while the UK 30-year gilt yield has reached its highest level since 1998. Other countries like Germany, Italy, and Japan have also experienced similar yield increases. Although the rise in yields over the past few months has not hindered the cryptocurrency price movement, major cryptocurrencies like Bitcoin have seen a decline since mid-December. Notably, China has witnessed a sharp decline in yields due to deflationary concerns.
Ace Hot Topic Analysis
Analysis
The cryptocurrency market experienced a bull run in the last quarter of 2024, but the rising trend of global government bond yields is putting pressure on cryptocurrency prices. The US 10-year Treasury yield, a global benchmark, has climbed to 4.70%, nearing a multi-year high, and has risen by over 100 basis points since the Fed's first cut to the federal funds rate in September. The UK 30-year gilt yield has surged even higher, reaching 5.35%, its highest level since 1998. Other countries like Germany, Italy, and Japan have also experienced similar yield increases. While the rise in yields over the past few months has not hindered the cryptocurrency price rally, major cryptocurrencies like Bitcoin have seen declines since mid-December, with Bitcoin falling below its all-time high of $108,000. This suggests that rising government bond yields are having a negative impact on the cryptocurrency market, as investors begin to shift funds towards more traditional investment avenues.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Global government bond yields rising are a major reason for pressure on cryptocurrency prices.
The rise in US 10-year Treasury yields and UK 30-year gilt yields has had a significant impact on the cryptocurrency market.
The cryptocurrency market experienced a bull run in the last quarter of 2024, but the rising yield trend has begun to affect price movements.
Despite concerns about deflation in China leading to a decline in yields, the trend of rising yields globally continues to put pressure on the cryptocurrency market.