#Cryptocurrency prices are under pressure.#
Hot Topic Overview
Overview
The cryptocurrency market experienced a bull run in the final quarter of 2024, but rising global government bond yields are putting pressure on crypto prices. The US 10-year Treasury yield has climbed to 4.70%, near multi-year highs, and has risen by over 100 basis points since the Fed's first cut to the federal funds rate in September. Other countries, including the UK, Germany, Italy, and Japan, have also seen similar yield increases. While rising yields have not hampered crypto price action in recent months, major cryptocurrencies like Bitcoin have seen declines since mid-December. China, on the other hand, has seen a sharp drop in yields due to deflationary concerns.
Ace Hot Topic Analysis
Analysis
The cryptocurrency market has recently come under pressure from rising global government bond yields. Despite a bull run in the last quarter of 2024, cryptocurrency prices have begun to face pressure as major economies like the US, UK, Germany, Italy, and Japan have raised interest rates. The US 10-year Treasury yield has neared multi-year highs, while the UK 30-year yield has reached its highest level since 1998. Rising interest rates have led investors to shift funds from the riskier cryptocurrency market to safer bond markets, resulting in a decline in cryptocurrency prices. For example, Bitcoin has fallen over 10% from its all-time high three weeks ago, with other major cryptocurrencies experiencing even larger declines. Notably, China has seen a sharp decline in yields due to deflationary concerns, a stark contrast to other countries. Overall, the global trend of rising interest rates has put some pressure on the cryptocurrency market, and future cryptocurrency price movements will depend on interest rate changes and market sentiment.
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 cryptocurrency market experienced a good bull run in the last quarter of 2024, but the rising yield trend has become undeniable.
Despite concerns about deflation in China leading to a decline in yields, the global trend of rising yields is putting pressure on the cryptocurrency market.