The global financial market is experiencing significant fluctuations after the Christmas holiday, and the cryptocurrency world is no exception. According to a report from Reuters, on December 26, the main index of Wall Street recorded slight changes amid light trading influenced by rising bond yields.
The yield on U.S. government bonds, especially the 10-year bond yield, has reached its highest level since May, rising to 4.64% in early trading before slightly decreasing to 4.58% in the afternoon. This is usually not very favorable for growth stocks as borrowing costs for expansion are pushed higher.
Notably, cryptocurrency-related stocks have fallen sharply alongside the decline in Bitcoin prices, with a drop of 3.9% on the same day. MicroStrategy's stock fell 3.7%, MARA Holdings weakened 2.5%, and Coinbase Global dropped 2.1%. This is a sign that the market remains quite sensitive to fluctuations in Bitcoin and altcoins.
In addition, the cryptocurrency market situation is also influenced by the Federal Reserve's forecast of fewer interest rate cuts in 2025, which has shaken investors' hopes for a lower interest rate environment.
Recent moves in the stock market have suggested a growth phase, termed "Santa Claus rally," which could create positive factors for the end of the year. However, with high bond yields and warnings from the Fed, the coin and altcoin markets are under pressure, and investors need to be cautious before the next fluctuations.
The information above is compiled by Reuters, highlighting the not-so-optimistic situation of the altcoin and cryptocurrency market currently, especially in the context of rising bond yields continuing to pressure high-growth technology stocks. Investors need to pay attention to monitor developments to have the most reasonable investment strategy.
