Early this morning before the bell, we see Bitcoin hovering just above $10,000, which isn’t bad since Bitcoin value has been perpetually dipping below that mark.
However, some traders are a little disappointed, partly because of the big news that dropped yesterday – investors are getting their federal interest rate cut after all!
After weeks of ‘will they or won’t they,’ Federal Reserve chairman Jerome Powell announced yesterday that indeed, the market was getting its rate cut.
However, as it turns out, many critics feel the chairman and the board were being miserly with their rate cut of 25 basis points.
Wall Street heads were expecting at least 50, and apparently, so was the president, who took the opportunity to blast Powell as not being sufficiently helpful on the American economy.
“As usual, Powell let us down,” the POTUS tweeted yesterday, “but at least he is ending quantitative tightening, which shouldn’t have started in the first place – no inflation. We are winning anyway, but I am certainly not getting much help from the Federal Reserve!”
Trump has been relentless in criticism of the Federal Reserve, and didn’t stop even after the interest rate cut, suggesting that it should of been much larger and a part of a broader interest rate cut package.
In reporting this morning at Cointelegraph, William Suberg notes that like Bitcoin, general markets “broadly shook off” the interest rate cut, while focusing specifically on BTC/USD response.
“At press time … Bitcoin appeared broadly unaffected by U.S. economic policy compared to its behavior in light of regulatory noises throughout last month,” Suberg writes. “Mixed messages from Congressmen and others produced significant volatility, with BTC/USD still down $4,000 versus its July highs. Compared to exactly one month ago, however, the pair has tracked neither up nor down.”
Where do we go from here? Sometimes these announcements need time to stabilize, and sometimes the secondary market activity isn’t apparent on the morning after. It’s worth keeping an eye on various market prices and assessing how the interest rate cut works in the machine – while also listening for any additional news from the Fed.