Fed Cuts And Signals More, But Cryptos Barely Move the Dial
The Federal Reserve’s 25 basis point rate cut, while anticipated, failed to stir significant movement in cryptocurrency markets. Chair Jerome Powell framed the decision as a "risk management cut," underscoring concerns beyond strong headline figures—3% Q2 growth, 4.3% unemployment, and record equities. Yet cryptos remained indifferent, suggesting decoupling from traditional monetary policy narratives.
Bond markets reacted paradoxically, with yields rising post-announcement. BRN’s Timothy Misir projects four additional cuts may be necessary to counter trade policy uncertainties and currency weakness. The muted crypto response highlights the asset class’s evolving idiosyncrasies—where macro stimuli no longer guarantee predictable price action.
