#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 cryptocurrency prices. The US 10-year Treasury yield has neared multi-year highs, 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 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, 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 final quarter of 2024, but the recent upward trend in global government bond yields has begun to put pressure on cryptocurrency 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 Federal Reserve first cut the federal funds rate in September. Similar yield increases have been observed in countries like the UK, Germany, Italy, and Japan. While the rise in yields over the past few months has not hindered cryptocurrency price movements, major cryptocurrencies like Bitcoin have recently seen declines, falling over 10% from their all-time highs reached three weeks ago. This suggests that rising government bond yields are putting pressure on the cryptocurrency market, as investors begin to shift funds towards traditional assets, leading to pressure on cryptocurrency prices.
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 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, rising yields in other parts of the world are putting pressure on cryptocurrency prices.