YEREVAN (CoinChapter.com) — The crypto market is falling rapidly in 2024, but it’s not the only one under pressure. U.S. Treasury bonds — once considered the safest assets — are also sliding. Investors are simultaneously pulling capital out of stocks, crypto, and long-term government debt, raising an important question: Is the broad retreat signaling deeper stress across global financial markets, especially the crypto market in 2025?
First Thing First: US Treasuries Are Losing Investors’ Trust
When investors trust U.S. government bonds (like Treasuries), prices and yields tend to move smoothly and predictably. But they start reacting more emotionally if they get nervous about the economy, government debt, or policy changes. This leads to sharp price changes within a single day.
Since bond yields move inversely to prices, a wide swing in yields (like more than 0.4 percentage points in a day) means that bond prices are jumping up and down a lot. This kind of volatility suggests that investors can’t agree on what bonds are really worth, and that uncertainty shows a lack of confidence.
Furthermore, former Treasury Secretary Lawrence Summers warned that rising debt and falling investor confidence could trigger “vicious spirals,” where borrowing becomes more expensive. Foreign investors currently hold $7 trillion in U.S. Treasuries. If they pull back, it could make it harder for the U.S. to finance its growing deficit.
US Economy’s Doldrums Are Impacting Crypto Markets Negatively in 2025
Bitcoin, which comprises nearly 65% of the crypto market’s net share, is feeling the jitters caused by the US economic issues so far in 2025.
For instance, U.S.-based Bitcoin ETFs are seeing large capital outflows. Between April 1 and April 10, these funds witnessed $1.1 billion in withdrawals, with April 8 recording the worst single-day outflow of $326.3 million. BlackRock’s IBIT alone lost $252.9 million, pointing to a declining investor confidence even in regulated crypto products.
The outflows from the crypto market so far in 2025 further show that the U.S. crypto market is part of the broader exit from American financial assets.
Even Retail Appetite For Crypto is Down
Meanwhile, the Korea Premium Index, which measures the price gap between Korean and global exchanges, turned negative again in April — the first of its kind in the crypto market in 2025.
The index, which serves as a barometer for retail interest in the crypto sector, dropped below -2%. A negative premium shows that Korean traders are selling BTC at a discount, suggesting weak local demand. This premium typically spikes in bull markets as local buyers pay above-market prices.
The premium remained positive throughout Q1 2025. Its return below zero alongside falling U.S. ETF flows confirms global disinterest in holding Bitcoin at current prices.
Trump’s latest tariff pause has injected short-term relief in the crypto and broader risk-on markets. Nonetheless, investors appear to have been more cautious per the ETF outflows and lack of retail interest. These factors indicate that the crypto market risks declining further in 2025.
Conversely, a concrete trade policy may ease investors, helping cryptocurrencies to locate a local bottom.