#Cryptocurrency prices are under pressure.#

The cryptocurrency market experienced a bull run in the last 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 climbed to 4.70%, nearing a multi-year high, and has risen by over 100 basis points since the Fed 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 seen declines since mid-December, partly due to investors shifting funds from risk assets to higher-yielding bond markets. China stands out as an exception, with yields plummeting due to deflationary concerns. Overall, rising government bond yields are putting pressure on the cryptocurrency market, and investors need to closely monitor this trend.