#Cryptocurrency prices are under pressure.#
Hot Topic Overview
Overview
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 neared multi-year highs, while the UK 30-year yield has reached its highest level since 1998. Similar yield increases have been observed in other countries. 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. Notably, China has witnessed a sharp drop in yields due to deflationary concerns.
Ace Hot Topic Analysis
Analysis
The cryptocurrency market experienced a bull run in the last quarter of 2024, but the recent upward trend in global government bond yields has put pressure on cryptocurrency prices. The US 10-year Treasury yield has neared multi-year highs, rising over 100 basis points since the Fed's first cut to the federal funds rate in September. The UK 30-year gilt yield has hit its highest level since 1998. Other countries like Germany, Italy, and Japan have also experienced similar yield rises. While the yield increases over the past few months haven't hindered the cryptocurrency price trajectory, major cryptocurrencies like Bitcoin have seen declines since mid-December. This suggests that rising government bond yields are impacting the cryptocurrency market, as investors begin to focus on the attractiveness of 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 are 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 good bull run in the last quarter of 2024, but the rising yield trend is reversing this.
China's deflationary concerns have led to a sharp decline in yields, making it an exception in the cryptocurrency market.