#Cryptocurrency prices are under pressure.#
Hot Topic Overview
Overview
The cryptocurrency market experienced a bull run in the final quarter of 2024, but the recent upward trend in global government bond yields is putting pressure on crypto prices. The US 10-year Treasury yield has climbed to 4.70%, nearing multi-year highs, and has risen by over 100 basis points since the Fed first cut the federal funds rate in September. Other countries, including the UK, Germany, Italy, and Japan, have also experienced similar yield increases. While the rise in yields over the past few months has not deterred crypto price action, major cryptocurrencies like Bitcoin have seen declines since mid-December, partly due to investors shifting funds to higher-yielding traditional assets.
Ace Hot Topic Analysis
Analysis
Cryptocurrency prices have recently come under pressure, primarily due to rising global government bond yields. Despite a bull run in the last quarter of 2024, the continued climb in bond yields in countries like the US, UK, Germany, Italy, and Japan has begun to weigh on cryptocurrency prices. For instance, the US 10-year Treasury yield has risen to 4.70%, nearing multi-year highs, while the UK 30-year gilt yield has reached its highest level since 1998. Rising yields imply increased borrowing costs, which negatively impact risk assets, including cryptocurrencies. While the rise in yields over the past few months hasn't hindered cryptocurrency price movements, major cryptocurrencies like Bitcoin have recently seen declines, partly due to investors shifting funds towards higher-yielding bond markets. Notably, China has witnessed a decline in yields, contrary to the global trend, driven by 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.
Rising interest rates in major economies like the US and UK have negatively impacted the cryptocurrency market.
The cryptocurrency market experienced a 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, the global trend of rising yields continues to put pressure on cryptocurrency prices.