We can’t just dismiss history every time something new is invented. The development of crypto-assets makes possible something that’s never been seen before, programmable money.

The applications of this are limited only to the human imagination. However, as investors, we much continue to closely watch what’s happening in the other markets in order to understand the context of the movements in the crypto market.

As we’ll explore below, as this new industry matures, the correlations between the stocks, commodities, currencies, and crypto are growing ever stronger.

Today’s Highlights

Traditional Markets

The economy is strong and the United States is going to continue to raise its interest rates. This is the message from the Chairman of the US Federal Reserve Bank, the organization that has the most influence over all money on the planet.

Yet, even as the Fed is signalling that they will tighten, the US Dollar continued to soften, just as it has been doing since reaching a new peak on August 15th.

To demonstrate just how influential the Dollar’s movements have been on the rest of the markets, here’s a graph that shows 4 key markets from different asset classes since the Buck’s peak.

As you can see, the stock market, commodities, currencies, and even crypto have all been taking advantage of the Dollar’s sudden weakness and rising during the Greenback’s pullback.

Of course, early on this month, things were going the other direction. As the Dollar got stronger everything was falling in relation.

The TRY is falling

The Turkish Lira made a break lower early in this week’s trading. However, unlike earlier in the month where this type of movement caused massive tidal waves in other markets, the falls today are completely isolated.

Even in the middle of the month, the Lira’s declines would influence other emerging market currencies. Today though, the Lira falls all by itself.