manager at bitcoin and crypto exchange Luno, said in emailed comments. "For the risk-off asset narrative to return, institutional investors must see a decline in bitcoin’s correlation with the S&P 500," Sam Kopelman, U.K. However, Apple'sĪAPL share price rose more than the bitcoin price last year as technology stocks led markets higher.įears that the Fed could hike its record-low interest rates and cut its huge Covid-era stimulus measures have weighed on bitcoin, crypto and equity prices across the board in recent months and bitcoin's move in tandem with stocks has knocked its reputation as a safe-haven asset. The crypto market ballooned to $3 trillion in late 2021, up from $200 billion in early 2020. The bitcoin price has soared over 500% during the last two years, with other major cryptocurrencies such as ethereum and its many rivals making even larger gains as easy money flooded markets. "Some participants judged that a significant amount of balance sheet shrinkage could be appropriate over the normalization process, especially in light of abundant liquidity in money markets." "Almost all participants agreed that it would likely be appropriate to initiate balance sheet runoff at some point after the first increase in the target range for the federal funds rate," according to the meeting summary. NDAQ lost more than 3% in its worst sell-off since March. Cryptocurrency prices fell along with stock markets after the Federal Reserve released the minutes of its December meeting in which officials discussed the possibility of earlier and faster interest rate hikes and shrinking the Fed's $8.3 trillion balance sheet.