Rising global bond yields may impact the Crypto Assets bull run

Recently, global government bond yields have shown an upward trend, raising concerns in the market about the prospects of a Crypto Assets bull run. Since the end of 2024, the Crypto Assets market has maintained strong momentum, but changes in the bond market may affect investor sentiment.

Data shows that the yield on the 10-year U.S. Treasury bond has risen to around 4.70%, close to a multi-year high. Since the Federal Reserve first cut interest rates in September last year, this yield has increased by more than 100 basis points. At the same time, the yield on the 30-year British government bond also reached 5.35% this Wednesday, marking a new high since 1998, with the increase during the same period also exceeding 100 basis points.

The changes in this interest rate environment may prompt investors to reassess their risk preferences. As yields in the traditional bond market rise, some investors may shift from high-risk assets (such as Crypto Assets) to relatively safer fixed-income products. This potential shift in capital flows could pose challenges to the continued rise of the Crypto Assets market.

At the same time, the regulatory environment in the United States is also constantly changing. The outgoing chairman of the Commodity Futures Trading Commission (CFTC), Rostin Behnam, reiterated the importance of accelerating the legislative process for Crypto Assets regulation. He expects that the complete legislative process could take 6 to 10 months, while the subsequent rule-making could last for a year.

Behnam stated that existing regulations struggle to effectively address the challenges faced by the Crypto Assets market, making it urgent to update and improve the regulatory framework. He also mentioned that the CFTC is considering establishing a "sandbox" environment that would allow cryptocurrency participants to operate within a controlled framework without excessive concern for enforcement or regulatory pressure.

In terms of project dynamics, Sonic SVM and Galaxy Interactive announced the joint launch of the G.A.M.E. Fund 1, aimed at promoting the development of Web3 games, AI agents, and social media Web3 applications. The fund will focus on three areas: Web3 game innovation, AI agent development, and social media content creation. The first round of investment has been confirmed for mobile casual game company Gomble Games, which has over 110 million global users.

Sonic SVM CEO Chris Zhu emphasized that this fund will promote the integration of gaming, artificial intelligence, and social platforms. He stated: "The future of gaming lies in the combination of high-performance infrastructure, artificial intelligence, and social connections."

On the other hand, the U.S. Department of Justice has been authorized to sell 69,370 bitcoins seized in the Silk Road case, valued at approximately $6.5 billion. Although approved, the specific timing of the sale has yet to be determined. This news has caused mixed reactions in the market, with Bitcoin prices dropping nearly 2% in the short term, currently quoted at $93,365.2.

Overall, the rise in global bond yields, changes in the regulatory environment, and the potential large-scale sale of Bitcoin may all impact the Crypto Assets market. Investors need to closely monitor the development of these factors and their potential effects on market sentiment and capital flows.