#Cryptocurrency prices are under pressure.#

Cryptocurrency prices are currently under pressure, primarily due to rising global government bond yields. While the cryptocurrency market experienced a healthy bull run in the final quarter of 2024, the trend of rising global yields has become undeniable. The US 10-year Treasury yield, a global benchmark, has climbed to near multi-year highs of 4.70%, rising over 100 basis points since the Fed's first cut to the federal funds rate in September. Other countries like the UK, Germany, Italy, and Japan have also experienced similar yield increases. The rise in yields over the past few months seemed to have little impact on cryptocurrency prices, but since mid-December, major cryptocurrencies like Bitcoin have seen declines, partly due to investors shifting funds to higher-yielding bond markets. While China has seen a sharp decline in yields due to deflationary concerns, overall, the trend of rising global yields is putting pressure on cryptocurrency prices.