FalconX Research Director: Rate cut forecasts may not affect the crypto market in the long term, and the correlation between Bitcoin and major stock indexes has declined

Odaily report: Zaheer Ebtikar, founder of the cryptocurrency fund Split Capital, said: "The global market expects the Federal Reserve's dovish stance to weaken by 2025. As a result, cryptocurrency event traders and market makers are reducing their risk." The Federal Reserve officials lowered the benchmark interest rate for the third consecutive time on Wednesday, but controlled the expected number of rate cuts by 2025. Lower interest rates usually increase the demand for most high-risk assets (such as cryptocurrencies). David Lawant, head of research at cryptocurrency commodity broker FalconX, said that while the rate cut forecast is currently affecting prices, it may not have a long-term impact, as Bitcoin's correlation with major stock indices has already declined. Lawant said: "The expected slowdown in the pace of rate cuts by 2025 is not entirely unexpected, but it has put some pressure on risk assets, including cryptocurrencies. While macroeconomic factors have traditionally influenced the price trend of cryptocurrencies, industry-specific factors may dominate in the coming weeks and months, especially in the context of market expectations of policy changes under the new government." (Bloomberg)