#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 near a multi-year high of 4.70%, while the UK 30-year gilt yield has hit its highest level since 1998. While the rise in yields over the past few months has not deterred the cryptocurrency price action, major cryptocurrencies like Bitcoin have seen declines since mid-December. Despite this, yields in China have fallen sharply due to deflationary concerns.
Ace Hot Topic Analysis
Analysis
The cryptocurrency market experienced a bull run in the last quarter of 2024, but the rising trend in global government bond yields is putting pressure on cryptocurrency prices. 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. Similar trends have been observed in other countries, such as the UK 30-year gilt yield reaching its highest level since 1998, and the Japanese 10-year government bond yield hitting its highest level in nearly 15 years. While the rise in yields over the past few months has not hindered the cryptocurrency price movement, major cryptocurrencies like Bitcoin have seen a decline since mid-December. This suggests that rising government bond yields are putting pressure on the cryptocurrency market, as investors begin to focus on the return on risk assets and shift towards safer investment options.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Rising global government bond yields are a major reason for the pressure on cryptocurrency prices.
Significant interest rate hikes in the US and UK have had a negative impact on the cryptocurrency market.
The cryptocurrency market experienced a good bull run in the last quarter of 2024, but the rising yield trend has become undeniable.
Despite rising yields in recent months, cryptocurrency prices hit all-time highs in early to mid-December, but prices have since declined.