#Cryptocurrency prices are under pressure.#
Hot Topic Overview
Overview
The cryptocurrency market experienced a bull run in the last quarter of 2024, but rising global government bond yields have recently put pressure on cryptocurrency prices. The US 10-year Treasury yield has climbed to 4.70%, nearing multi-year highs, while the UK 30-year gilt yield has hit its highest level since 1998. Yields across major economies have surged since the Fed's first rate cut in September. While the rise in yields over the past few months has not hampered cryptocurrency price movements, major cryptocurrencies like Bitcoin have recently seen declines, falling over 10%.
Ace Hot Topic Analysis
Analysis
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, a global benchmark, has risen to near a multi-year high of 4.70%, up over 100 basis points since the Fed's first cut to the federal funds rate in September. The UK 30-year gilt yield has risen even further, reaching its highest level since 1998 at 5.35%, up 105 basis points since the Fed's rate cut. 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 movement, major cryptocurrencies like Bitcoin have recently seen declines, partly due to rising yields prompting investors to shift funds from risk assets to safer assets. Notably, China has seen a sharp decline in yields due to deflationary concerns.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Rising global government bond yields are a major reason for the pressure on cryptocurrency prices.
Significant interest rate hikes in the US and UK have negatively impacted the cryptocurrency market.
The cryptocurrency market experienced a good bull run in the last quarter of 2024, but the rising yield trend has become undeniable.
Despite deflationary concerns in China leading to a decline in yields, rising yields in other parts of the world have put pressure on cryptocurrency prices.