#Cryptocurrency prices are under pressure.#
Hot Topic Overview
Overview
The cryptocurrency market experienced a bull run in the final quarter of the year, but recently rising global government bond yields have put pressure on cryptocurrency prices. Yields have surged in countries like the US, UK, Germany, Italy, and Japan, leading to declines in the prices of major cryptocurrencies like Bitcoin. While rising yields haven't hampered cryptocurrency price movements in recent months, the recent rapid rise in yields has begun to put pressure on the market. Notably, China has seen a sharp decline in yields due to deflationary concerns, a stark contrast to other countries.
Ace Hot Topic Analysis
Analysis
The cryptocurrency market experienced a bull run in the last quarter of 2024, but rising global government bond yields are putting pressure on cryptocurrency prices. The US 10-year Treasury yield 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 also hit its highest level since 1998, leading by 105 basis points since the Fed's first rate cut in September. Other countries, such as Germany, Italy, and Japan, have also experienced similar yield rises. The rise in yields over the past few months does not seem to have hampered the cryptocurrency price action, but recently Bitcoin and other major cryptocurrencies have seen a decline in price, for example, Bitcoin is down over 10% from its all-time high of $108,000 set three weeks ago. 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
Global government bond yields rising is a major reason for pressure on cryptocurrency prices.
Higher interest rates in major economies like the US and UK have had a negative impact on the cryptocurrency market.
Despite rising yields in recent months, cryptocurrency prices hit record highs in early to mid-December before falling.
China is an exception to the cryptocurrency market, with yields falling sharply due to deflationary concerns.