#Cryptocurrency prices are under pressure.#

Cryptocurrency prices have recently come under pressure, primarily due to rising global government bond yields. While the crypto market experienced a bull run in the last quarter of 2024, the surge in bond yields in countries like the US, UK, Germany, Italy, and Japan, particularly the US 10-year Treasury yield nearing multi-year highs, has put pressure on cryptocurrency prices. Yields have risen significantly since the Fed's first rate cut in September, prompting investors to shift funds from risk assets like cryptocurrencies to safer assets like bonds. While rising yields haven't hampered cryptocurrency price movements in the past few months, major cryptocurrencies like Bitcoin have seen notable declines recently, falling over 10% from their all-time highs. Notably, China stands out as an exception with sharply declining yields due to deflationary concerns. Overall, rising government bond yields pose pressure on cryptocurrency prices, and investors need to closely monitor this trend.