K33 Research analysts stated in a report that despite the decline in global stock indices, Bitcoin remains above $95,000. However, on a weekly basis, Bitcoin has fallen in sync with major stock indices. K33 Research head Vetle Lunde said: “In the two weeks following the FOMC meeting, global risk has decreased, and Bitcoin's two-week return has been negative 11%, while Ethereum has dropped 15%, pushing the ETH/BTC exchange rate down to 0.036.”
Vetle stated that the current decline in Bitcoin is closely related to the global stock market. Since the end of September, the correlation of this digital asset with Nasdaq has first exceeded 0.50 over a 30-day period. He believes that the FOMC meeting on December 18 is a key factor leading to the market downturn. At this meeting, the Fed's dot plot was revised to predict two rate cuts in 2025, down from the four cuts forecasted in September. Rate cuts often boost the market, so the expectation of fewer rate cuts is unfavorable for risk assets like Bitcoin.
Vetle said: “Although the Federal Reserve has cut interest rates by 100 basis points since September, the yield on the 10-year U.S. Treasury bond has risen by 100 basis points, indicating that the market expects inflationary pressures in the future.” He pointed out that after the FOMC meeting, Bitcoin experienced a significant outflow of ETF funds, and MicroStrategy's purchases were also more restrained. (The Block)

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