#Cryptocurrency prices are under pressure.#
Hot Topic Overview
Overview
The cryptocurrency market experienced a bull run in the final quarter of this year, but the recent upward trend in global government bond yields is putting pressure on cryptocurrency prices. Countries like the US, UK, Germany, Italy, and Japan have all seen significant interest rate hikes, leading to declines in the prices of major cryptocurrencies like Bitcoin. While rising yields in the past few months did not hinder cryptocurrency price movements, the recent sustained rise in yields has begun to negatively impact the market. Notably, China has seen a sharp decline in yields due to deflationary concerns, a stark contrast to the trend in other parts of the world.
Ace Hot Topic Analysis
Analysis
Cryptocurrency prices have recently come under pressure, primarily due to rising global government bond yields. 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. Other countries like Germany, Italy, and Japan have also witnessed similar upward trends in interest rates. While rising yields over the past few months did not hinder cryptocurrency price movements, major cryptocurrencies like Bitcoin have recently experienced declines exceeding 10%. This suggests that investors are starting to pay attention to the impact of rising yields on the cryptocurrency market. Higher yields imply greater returns on investing in bonds, attracting some capital away from the cryptocurrency market and putting pressure on cryptocurrency prices. Notably, China has seen a decline in yields due to deflationary concerns, diverging from the global trend.
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 led investors to shift funds from risk assets like cryptocurrencies to safer investments such as government bonds.
The cryptocurrency market experienced a good bull run in the last quarter of 2024, but the trend of rising yields has become undeniable, leading to a price correction.
While China has seen yields decline due to deflationary concerns, the global trend of rising yields is putting pressure on the cryptocurrency market.