#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 a multi-year high, while the UK 30-year gilt yield has reached its highest level since 1998. Similar yield increases have been observed in other countries such as Germany, Italy, and Japan. While rising yields have not hindered cryptocurrency price gains in recent months, major cryptocurrencies like Bitcoin have recently seen declines, partly due to investors shifting funds towards higher-yielding traditional assets.
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, 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. 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 cryptocurrency price movements, major cryptocurrencies like Bitcoin have seen declines since mid-December. For example, Bitcoin is down over 10% from its all-time high of $108,000 reached three weeks ago. This suggests that rising government bond yields are having a negative impact on the cryptocurrency market and could lead to further price declines in the future.
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.
Interest rates have risen sharply in major economies such as the US and UK, leading to a pullback in the cryptocurrency market.
Despite rising yields in recent months, cryptocurrency prices hit record highs in early to mid-December before falling.
China's deflationary concerns have led to a sharp decline in yields, an exception in the cryptocurrency market.