#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. The US 10-year Treasury yield has neared multi-year highs, while the UK 30-year gilt yield has reached its highest level since 1998. Similar interest rate increases have been observed in other countries. While the rise in yields over the past few months has not deterred cryptocurrency price gains, major cryptocurrencies like Bitcoin have recently seen declines, partly due to investors shifting funds to higher-yielding bond markets.
Ace Hot Topic Analysis
Analysis
The cryptocurrency market experienced a bull run in the last quarter of 2024, but the recent upward trend in global government bond yields is putting pressure on cryptocurrency prices. The US 10-year Treasury yield, a global benchmark, has risen to 4.70%, nearing a multi-year high, and has climbed over 100 basis points since the Fed's first cut to the federal funds rate in September. Similar yield increases have been observed in countries like the UK, Germany, Italy, and Japan. While the rise in yields over the past few months has not hindered cryptocurrency price gains, major cryptocurrencies like Bitcoin have recently seen declines, partly due to investors shifting funds towards higher-yielding traditional assets. China, on the other hand, has seen a sharp decline in yields due to deflationary concerns. Overall, the upward trend in global government bond yields is putting pressure on the cryptocurrency market, and investors need to closely monitor the impact of this trend on future cryptocurrency prices.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
Global government bond yields rising puts pressure on cryptocurrency prices.
US 10-year Treasury yields rose to near multi-year highs, while UK 30-year yields also hit new highs.
Sharp rise in interest rates has led to a decline in cryptocurrency prices, such as Bitcoin falling over 10%.
China's deflationary concerns led to a sharp decline in yields, becoming an exception.