#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 trend of rising 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 the past few months, the current rise in yields has begun to impact the market, with Bitcoin prices falling over 10% from their all-time high three weeks ago, and several other major currencies experiencing even larger declines. Notably, China has seen a sharp decline in yields due to deflationary concerns, a stark contrast to other countries.
Ace Hot Topic Analysis
Analysis
Cryptocurrency prices have recently come under pressure, primarily due to rising global government bond yields. Despite a bull run in the last quarter of 2024, the upward trend in bond yields in countries like the US, UK, Germany, Italy, and Japan has begun to impact the crypto market. For instance, the US 10-year Treasury yield has climbed to 4.70%, nearing a multi-year high, while the UK 30-year gilt yield has reached its highest level since 1998. The rise in yields has led investors to shift funds from risk assets like cryptocurrencies to safer investments, resulting in a decline in crypto prices. Major cryptocurrencies like Bitcoin have fallen over 10% from recent highs, with some other cryptocurrencies experiencing even larger drops. Notably, China has seen a sharp decline in its yields, contrary to the global trend, due to deflationary concerns. Overall, the upward trend in global bond yields poses a certain pressure on the cryptocurrency market, and future crypto price movements will need to monitor yield changes.
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 major economies such as the US and UK have risen sharply, leading to a decline in cryptocurrency prices.
Despite rising yields in recent months, cryptocurrency prices hit record highs in early to mid-December, but the price trend has since reversed.
China's deflationary concerns have led to a sharp decline in yields, an exception in the cryptocurrency market.