Bitcoin Crashes Alongside Stocks As Fed Reserve Cuts Rates To 0%Author: Ali RazaLast Updated: 18 June 2020 The US Federal Reserve has enacted yet another benchmark interest rate cut, going down to a laughable 0% interest. This comes all in a bid to combat the rampant Fear, Uncertainty, and Doubt (FUD) that came alongside CORVID-19, commonly referred to as the Coronavirus.The sheer amount of FUD spreading across the world has crashed most of the world’s economies, and the crypto industry isn’t far behind. Bitcoin, in particular, has suffered a collapse in sync with the US stock market, their correlation reaching an all-time high due to how similarly they’ve behaved.Losing Four Years of ProgressAs it stands now, both the overall sentiment, as well as the economy proper, has reached a ten year low. During the years of 2008 and 2016, the US central bank had kept benchmark rates at 0% to try and boost the economy by encouraging households and businesses to take credit.As the rates have been gradually raised through these past four years, the Fed has now announced that it will cut rates back to 0%. Furthermore, the Fed will try and stabilize US markets by buying about $700 billion in various bonds. $500 billion of that funds will be aimed at Treasuries, with the remaining $200 billion aimed at mortgage-backed securities. This comes as a bid to try and allow institutions to gain the much-needed liquidity to help stop the US economy from a full-on train smash.Bitcoin Holding 0.5 Correlation With S&P 500The S&P 500 may actually have this rate cut priced in already, as it managed to sure 9.3% up after a monumental crash. As it stands now, the price to buy Bitcoin has an established trade correlation with the S&P 500, being measured at 0.5. This stands as the highest correlation between these two sectors ever recorded.The implications of this are many, but the most obvious one makes it clear that macro investors view Bitcoin as a speculative investment, instead of the haven asset some push it out to be. As a result, macro investors are dropping it like hot potatoes, preferring safer investments as the level of uncertainty reaches all-time highs.Overall CollapseBitcoin’s markets isn’t an exclusive thing within the crypto industry, however. Most of the cryptocurrencies in the industry performed similarly. With any luck, the narrative that Bitcoin is a safe-haven asset will be disproven once and for all. Technically, it was disproved already back when the threat of war between the US and Iran was at its highest this year. One can only imagine what’s going through the head of the infamous Hodlers after the massive downturn in Bitcoin.