#Cryptocurrency prices are under pressure.#
Hot Topic Overview
Overview
The cryptocurrency market experienced a bull run in the final quarter of this year, but the recent upward trend in global government bond yields has put pressure on cryptocurrency prices. The US 10-year Treasury yield has risen to near a multi-year high of 4.70%, while the UK 30-year gilt yield has reached its highest level since 1998. While the rise in yields over the past few months has not hindered the cryptocurrency price trend, major cryptocurrencies like Bitcoin have recently seen declines of over 10%. This suggests that rising government bond yields are having a negative impact on the cryptocurrency market, as investors begin to focus on the returns of risk assets and shift towards safer investment options.
Ace Hot Topic Analysis
Analysis
The cryptocurrency market experienced a bull run in the final quarter of 2024, but the recent upward trend in global government bond yields has begun to put pressure on cryptocurrency prices. The US 10-year Treasury yield, a global benchmark, has risen to near multi-year highs of 4.70%, climbing over 100 basis points since the Federal Reserve first cut the federal funds rate in September. Similar yield increases have been observed in other countries, including the UK, Germany, Italy, and Japan. While the rise in yields over the past few months has not hindered cryptocurrency price movements, major cryptocurrencies like Bitcoin have recently seen declines, with Bitcoin falling over 10% from its all-time high three weeks ago. This phenomenon suggests that rising government bond yields are putting pressure on the cryptocurrency market, as investors begin to shift funds towards traditional assets, leading to pressure on cryptocurrency prices.
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.
Major economies like the US and UK have seen significant interest rate hikes, leading to a decline in cryptocurrency prices.
The cryptocurrency market experienced a good bull run in the last quarter of 2024, but the rising yield trend has become undeniable.
Despite rising yields in recent months, cryptocurrency prices still hit all-time highs in early to mid-December before retracing.