#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 haven't hampered cryptocurrency price movements in recent months, the sustained rise in yields since the Fed's first rate cut in September 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 global trend.
Ace Hot Topic Analysis
Analysis
The cryptocurrency market experienced a bull run in the final quarter of the year, but rising global government bond yields are putting pressure on crypto prices. The US 10-year Treasury yield has neared multi-year highs, rising over 100 basis points since the Fed first cut the federal funds rate in September. The UK 30-year gilt yield has also hit its highest level since 1998, leading by 105 basis points since the Fed's rate cut. Other countries, such as Germany, Italy, and Japan, have experienced similar yield rises. While the rise in yields over the past few months has not deterred the crypto price action, Bitcoin and other major cryptocurrencies have recently seen declines, with Bitcoin falling over 10% from its all-time high three weeks ago. Notably, China has seen a sharp decline in yields due to deflationary concerns.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Global government bond yields rising are 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 rising yield trend is reversing this.
Despite deflationary concerns in China leading to a decline in yields, the global trend of rising yields continues to put pressure on cryptocurrency prices.