The Federal Reserve cut interest rates for the first time in almost a decade as it attempted to protect the thriving US economy from increasing global risks. The stock market, in an immediate response, closed lower on the day, with the Dow Jones Index, the S&P 500 Index, and Nasdaq Composite Index each returning intraday losses.<\/p>\n
Faraway from the mainstream, bitcoin was also showing signs of growth<\/a> ahead of the Fed chair Jerome Powell’s press conference yesterday. While it closed the day 5 percent higher, its gains are now getting negated, showing that the impacts of Fed rate cut are wearing off.<\/p>\n But, according to market analyst Alex Kr\u00fcger, bitcoin is too young to be influenced by global-scale events such as a rate cut. The economist noted that the cryptocurrency saw a minor increase in its rate around 14:00 ET, the time of the Federal Reserve announcement. The US equity market started showing volatile behaviors around 14:37, during Powell’s conference. Bitcoin, on the other hand, remained calm.<\/p>\n “That’s how an uncorrelated asset for which monetary policy is a [very] minor driver trades,” said Kr\u00fcger. “I’m surprised this is still the case, but it is. Theoretically, the more institutionalized class the asset class becomes, the more it will react to the Fed. Not there just yet.”<\/p><\/blockquote>\n Indeed. Today's gain have nothing to do with the Fed. In fact, market thinks the Fed underdelivered today. Traditional assets crashed accordingly during the presser.<\/p>\n — Alex Kr\u00fcger (@krugermacro) July 31, 2019<\/a><\/p><\/blockquote>\n\n