#Cryptocurrency prices are under pressure.#

Cryptocurrency prices have recently come under pressure, primarily due to rising global government bond yields. While the cryptocurrency market experienced a bull run in the last quarter of 2024, the trend of rising global yields has become undeniable. The US 10-year Treasury yield, a global benchmark, has climbed to 4.70%, nearing multi-year highs, and has risen over 100 basis points since the Fed's first cut to the federal funds rate in September. Similar trends of rising yields have been observed in countries like the UK, Germany, Italy, and Japan. While the rise in yields over the past few months seemed to have not hindered cryptocurrency price movements, major cryptocurrencies like Bitcoin have recently seen declines, with Bitcoin falling over 10% from its all-time high of $108,000 reached three weeks ago. Notably, China stands out as an exception, with yields plummeting due to deflationary concerns.