#Cryptocurrency prices are under pressure.#
Hot Topic Overview
Overview
The cryptocurrency market experienced a bull run in the last quarter of 2024, but recently rising global government bond yields have put pressure on cryptocurrency prices. The US 10-year Treasury yield has climbed to near a multi-year high of 4.70%, 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. While rising yields have not hampered cryptocurrency price movements in the past few months, major cryptocurrencies like Bitcoin have seen declines 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 in 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 multi-year highs, and has risen by over 100 basis points since the Fed's first cut to the federal funds rate in September. Similar yield increases have been observed in countries like 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 seen declines since mid-December. For instance, Bitcoin has fallen over 10% from its all-time high of $108,000 reached three weeks ago. This phenomenon suggests that the cryptocurrency market is starting to notice the rising government bond yields and their negative impact on prices.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Global government bond yields rising is 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.
China's deflationary concerns have led to a sharp decline in yields, making it an exception in the cryptocurrency market.