#Cryptocurrency prices are under pressure.#
Hot Topic Overview
Overview
The cryptocurrency market experienced a bull run in the final 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. 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. China stands out as an exception, with yields falling sharply due to deflationary concerns.
Ace Hot Topic Analysis
Analysis
The cryptocurrency market experienced a bull run in the last quarter of 2024, but rising global government bond yields are putting pressure on cryptocurrency prices. 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 rate cut in September. The UK 30-year gilt yield has also risen to 5.35%, its highest level since 1998. Other countries, such as Germany, Italy, and Japan, have experienced similar yield increases. While rising yields did not hinder cryptocurrency price gains in the past few months, major cryptocurrencies like Bitcoin have fallen over 10% since mid-December, with other cryptocurrencies experiencing even larger declines. This suggests that rising government bond yields are having a negative impact on the cryptocurrency market, as investors begin to shift funds from risk assets to safer assets.
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.
Interest rates in the US and UK have risen sharply, leading to a decline in cryptocurrency prices.
The cryptocurrency market experienced a good bull run in the last quarter of 2024, but the rising yield trend has become undeniable.
China's deflationary concerns have led to a sharp decline in yields, making it an exception in the cryptocurrency market.