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Crypto Prices Under Pressure From Global Rise in Yields
A sharp gain in interest rates didn't dent crypto's price rally through late 2024, but that may not be the case anymore.
Jan 8, 2025, 3:42 p.m.
What to know:
- Government bond yields continue to rise, most notably in the U.K., where the 30-year Gilt yield is at the highest since 1998.
- Rising rates for months haven't appeared to be holding back crypto prices, but they have taken notice of late.
- An exception to the global rate action is China, where yields are falling on deflationary conditions.
Crypto markets had been on a nice bull run the the final quarter of 2024, but the trend of rising government bond yields across the globe appears to have become to strong to ignore.
Considered the benchmark that sets the standard across the world, the U.S. 10-year Treasury yield has risen to 4.70% as of Wednesday, nearing a mulit-year high and now up more than 100 basis points increase since the Federal Reserve first cut its fed funds rate in September.
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The action in the U.K. has been even more extreme, with the 30-year Gilt yield on Wednesday rising to 5.35%, its highest level since 1998. It's now ahead by 105 basis points since the Fed's first rate cut in September.
Large jumps in interest rates aren't limited to the U.S. and U.K., as Germany, Italy and Japan — to name three — have experienced similar action. Japan's 10-year JGB yield, in fact, has risen to 1.18% — a relatively tiny number, but its highest level in nearly 15 years.
Rising yields through much of the last several months didn't appear to impede crypto price action, where bitcoin and a number of other digital assets rose to record or multi-year highs in early-mid December. The price action since is a different story, with bitcoin — for instance — down more than 10% from its record above $108,000 set just three weeks ago and several other majors lower by even larger amounts.
There's always an exception and this time around it's China, where yields are falling sharply on deflation worries. According to an X post by The Kobeissi Letter, China has been experiencing its longest period of deflation since 1999.
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What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
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Japan’s Higher Rates Puts Bitcoin in the Crosshairs of a Yen Carry Unwind
A stronger yen typically coincides with de-risking across macro portfolios, and that dynamic could tighten liquidity conditions that recently helped bitcoin rebound from November’s lows.
What to know:
- The Bank of Japan is expected to raise interest rates to 0.75% at its December meeting, the highest since 1995, affecting global markets including cryptocurrencies.
- A stronger yen could lead to de-risking in macro portfolios, impacting liquidity conditions that have supported bitcoin's recent recovery.
- Governor Kazuo Ueda indicated a high probability of a rate hike, with officials prepared for further tightening if their economic outlook supports it.
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