#Cryptocurrency prices are under pressure.#
Hot Topic Overview
Overview
The cryptocurrency market experienced a bull run in the final quarter of 2024, but recently rising global government bond yields have put pressure on cryptocurrency prices. The US 10-year Treasury yield has climbed to 4.70%, nearing multi-year highs, while the UK 30-year gilt yield has reached its highest level since 1998. While the rise in yields over the past few months has not deterred the cryptocurrency price trend, major cryptocurrencies like Bitcoin have seen declines since the Fed's first rate cut in September. Notably, China stands out as an exception, with yields plummeting 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 is putting pressure on cryptocurrency prices. The US 10-year Treasury yield has risen to 4.70%, nearing a multi-year high, and has climbed 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 recently seen declines, partly due to investors shifting funds from risk assets to higher-yielding bond markets. China, on the other hand, has witnessed a sharp decline in yields due to deflationary concerns. Overall, the upward trend in global government bond yields poses some pressure on the cryptocurrency market, and future cryptocurrency price movements will depend on the market's reaction to interest rate changes and investor confidence in cryptocurrencies.
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 to a decline in cryptocurrency prices.
The impact of rising yields on cryptocurrency prices has only started to become apparent in recent months.
China's deflationary concerns have led to a decline in yields, making it an exception in the cryptocurrency market.