#Cryptocurrency prices are under pressure.#
Hot Topic Overview
Overview
The cryptocurrency market experienced a bull run in the final quarter of 2024, but rising global government bond yields are 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's first cut to the federal funds rate in September. Similar yield increases have been seen in countries like the UK, Germany, Italy, and Japan. 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. China is an exception, with yields falling sharply due to deflationary concerns.
Ace Hot Topic Analysis
Analysis
The cryptocurrency market experienced a bull run in the fourth 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, a global benchmark, has risen to near multi-year highs of 4.70%, climbing over 100 basis points since the Fed's first rate cut in September. Other countries, such as the UK, Germany, Italy, and Japan, have also experienced similar yield increases. While the rise in yields over the past few months did not hinder cryptocurrency price gains, major cryptocurrencies like Bitcoin have seen declines since mid-December, with Bitcoin falling below its all-time high of $108,000, dropping over 10%. This phenomenon suggests that the cryptocurrency market is becoming increasingly sensitive to rising yields, with investors starting to shift funds from risk assets to safer investments, such as government bonds.
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
Significant interest rate hikes in major economies like the US and UK have had a negative impact on the cryptocurrency market
The cryptocurrency market experienced a good bull run in the last quarter of 2024, but the rising yield trend has become undeniable
Although rising yields in recent months have not seemed to hinder cryptocurrency price movements, recent price declines have occurred