Bond yields rise and Trump takes office, BTC falls below 90,000 and bounces back to nearly 100,000 USD

Rising bond yields not only affect the stock market but also deal a heavy blow to high-risk assets such as BTC. When bond yields rise, investors typically withdraw funds from high-risk assets (such as stocks and Crypto Assets) and instead invest in bonds that offer more stable returns. This change in fund flow puts pressure on the price of BTC. (Background: 'Los Angeles Fire' - Trump Criticizes Governor 'Saving Fish Not Fires' Meme coin smelt experienced a big pump of 11700%) This article is sponsored content, written and provided by Clickout Media, does not represent the position of Gate.io, involves meme coins (Memecoins) related Tokens, may have extremely high Fluctuation risks, and is not investment advice. See the responsibility warning at the end of the article. Recently, there has been significant turbulence in the global bond market, with yields on government bonds in developed countries rising sharply, putting enormous pressure on the stock market and debt-ridden countries. In particular, the surge in US government bond yields has become a focus, mainly driven by strong economic data and adjustments in monetary policy. The October US employment report showed a strong rise in the job market, with an additional 256,000 non-farm jobs added and an unexpected decrease in the unemployment rate. This data dispelled market concerns about an economic recession, prompting investors to reassess the direction of the Fed's monetary policy. At the same time, Fed officials updated their 2025 Interest Rate expectations, clearly indicating a reduced possibility of future rate cuts. This tightening signal further pushed bond yields up, with the 30-year US mortgage Interest Rate soaring to 6.9%. In addition, former President Trump's election and his commitment to implementing inflationary policies have also heightened market anxiety. Investors generally expect long-term Interest Rates to remain high, a expectation that has become a core factor driving up government bond yields. Bond yield dynamics with BTC prices Rising bond yields not only affect the stock market but also deal a heavy blow to high-risk assets such as BTC. The reason is that when bond yields rise, investors typically withdraw funds from high-risk assets (such as stocks and Cryptocurrency) and instead invest in bonds that offer more stable returns. This change in fund flow puts pressure on the price of BTC. Especially in the current environment, global investors' risk aversion has further intensified. According to analysis, the BTC futures market has seen outflows of over $10 billion recently, while the outflow of BTC ETF funds has also exceeded $700 million in the past two trading days. Market expectations for a Fed rate cut have quickly cooled, exacerbating investor pessimism. According to the CME FedWatch tool, the market currently sees the probability of a Fed rate cut in May 2025 falling below 30%. This persistent expectation of high borrowing costs has weakened the attractiveness of high-risk assets, leading to a significant drop in BTC prices from the year's high, falling below $90,000. Other pressures on the BTC market In addition to the impact of bond yields, the BTC market is also subject to multiple pressures. First, there is a lack of positive market catalysts. Over the past month, the market has failed to see enough positive signals to boost investor confidence, instead facing global regulatory uncertainty challenges. The low-risk preference atmosphere in the BTC market has plunged the entire Cryptocurrency market into a downtrend, with not only BTC falling significantly, but also mainstream Tokens such as Ethereum and Ripple coin falling by about 3%. Furthermore, the continued decline in BTC prices is also related to changes in market structure. According to CoinGlass data, the value of unclosed contracts in the BTC futures market has shrunk by over $10 billion in the past month, indicating a mass exodus of funds. This trend indicates that investors are cautious about the future trend of the Cryptocurrency market. Why is Cryptocurrency rising again? However, with Trump about to take office, his encryption policy has garnered widespread followings. The market expects the Trump administration to abolish the SAB 121 accounting principle, thus solving the problem of de-banking and sending friendly signals to the encryption industry. Furthermore, working with teams supporting encryption policies is expected to bring unprecedented opportunities to this sector. BTC has rapidly demonstrated strong Rebound capabilities within a few hours, with prices soaring over $8,000, re-establishing a key support level of $97,000. This intense price Fluctuation not only highlights BTC's characteristics as a high-risk asset but also reflects market instability. During this period, investors have the option to buy at lows, expecting prices to Rebound. At the same time, Ethereum has shown a high degree of synchronization with BTC. When BTC prices big dump, Ethereum also falls, falling below $2,900 at one point. However, Ethereum quickly Rebounds to over $3,100, showing that market confidence in the long-term potential of Cryptocurrency has not been completely lost. This Rebound further proves that investors are using market Fluctuations as entry opportunities. Wall Street Pepe combines meme Pepe frog with Wall Street financial culture The recent rising star in the Cryptocurrency market is Wall Street Pepe ($WEPE), designed to blend humor, creativity, and market strategy into a new Token, aiming to quickly gain fame in the investment circle. Wall Street Pepe is inspired by the famous internet meme Pepe frog and combines Wall Street's financial culture, aiming to create a Token project full of fun and investment potential. Additionally, the $WEPE team's efforts in transparency and security further enhance market trust in it, with the team claiming that the project's Smart Contract has been audited by Coinsult and SolidProof. The team states, 'Although still in the presale phase, it has raised over $48 million, showing a high level of follow in the market. WSP combines creativity with Cryptocurrency's pop culture, attracting the attention of many young investors. For investors seeking new opportunities, this is a project worth continued observation and may become the next market hotspot.' Conclusion Rising bond yields put obvious pressure on BTC prices. The current economic environment and policy direction have dealt a double blow to high-risk assets, and BTC has not been spared in this round of market Fluctuations. However, market pessimism is not irreversible, and the future trend of BTC still depends on improvements in the external environment and the restoration of investor confidence. With global monetary policy and regulatory environments becoming clearer, BTC price Fluctuations may continue, and investors need to remain vigilant in the face of high market uncertainty. Disclaimer Cryptocurrency investments are high-risk, with large price Fluctuations that can lead to capital losses. This article is for reference only and does not constitute investment advice. Please conduct your own research (DYOR) and make decisions cautiously.