Rising yields are putting more pressure on Bitcoin

Cryptocurrency markets have been on a nice uptrend in the last quarter of 2024, but the trend of rising government bond yields around the world appears to have become too strong to ignore.

Considered the benchmark that sets the standard around the world, the 10-year US Treasury yield rose to 4.70% as of Wednesday, approaching a multi-year high and now up more than 100 basis points since the Fed cut… Interest rates for the first time. September funds rate.

Action in the UK was more extreme, with the 30-year bond yield rising on Wednesday to 5.35%, its highest level since 1998. It is now 105 basis points ahead since the Fed’s first rate cut in September.

Big jumps in interest rates are not limited to the United States and the United Kingdom, as Germany, Italy and Japan – to name a few – have seen similar measures. In fact, the yield on 10-year Japanese government bonds has risen to 1.18% – a relatively small number, but its highest level in nearly 15 years.

Rising yields over most of the past few months don’t appear to be holding back cryptocurrency price action, with Bitcoin and a number of other digital assets rising to record or multi-year highs in early-mid-December. Price action has since become a different story, with Bitcoin – for example – falling more than 10% from its record high above $108,000 just three weeks ago, and several other major currencies falling by larger amounts.

There is always an exception, and this time it is China, where yields are falling sharply due to deflation fears. According to Share X by Message Al Qubaisi, China is experiencing its longest period of contraction since 1999.