K33 Research: Global markets digest the Fed's 2025 rate cut expectations, and Bitcoin is closely related to stock market performance

Odaily News reports that according to an analysis by K33 Research, despite the global stock index decline, BTC has remained above $95,000. However, on a weekly basis, BTC has declined in sync with major stock indices. K33 Research head Vetle Lunde stated that "in the past two weeks following the FOMC meeting, global risk has decreased, with BTC's two-week return at -11% and ETH down 15%, driving the ETH/BTC rate to 0.036." Vetle said the current BTC decline is closely related to the global stock market. Since late September, this digital asset's 30-day correlation with Nasdaq has exceeded 0.50 for the first time. He believes the key factor driving the market decline was the December 18 FOMC meeting, where the Fed's dot plot was revised to project two rate cuts by 2025, lower than the four projected in September. Rate cuts often boost the market, so the reduced number of expected cuts is unfavorable for risk assets like BTC. Vetle noted that "while the Fed has lowered rates by 100 basis points since September, the 10-year US Treasury yield has risen by 100 basis points, indicating the market expects future inflationary pressures." He pointed out that after the FOMC meeting, BTC experienced significant ETF fund outflows, and MicroStrategy's purchases have also become more restrained. (The Block)