Bitcoin and the majority of crypto assets strengthened amidst the wait and see attitude of market players waiting for the policy of the United States (US) central bank, The Federal Reserve (The Fed).
Part of the increase in crypto asset prices is due to increasing confidence among market players that the Fed will maintain its benchmark interest rate at this week’s meeting. Although last week’s data showed US inflation had increased.
Ajaib Crypto Financial Expert, Panji Yudha, explained technically the movement of Bitcoin, which had attempted to break out from resistance of USD 26,800 or the equivalent of IDR 412.5 million (assuming an exchange rate of IDR 15,392 per US dollar) until it rose to a price of USD 27,411 or the equivalent of IDR 421.6 million.
“However, we have not been able to break out the MA-50, which is currently a dynamic resistance area, so it fell again below USD 26,800 or the equivalent of IDR 412.5 million on Tuesday,” said Panji in a press release, quoted on Wednesday (20/9/2023).
Last week, there was the release of data on the inflation rate for the United States, where there was a spike in inflation in August due to the fuel oil (BBM) supply crisis after a number of OPEC+ countries tightened crude oil export policies.
“This week, market players will pay close attention to the Fed’s decision to release its benchmark interest rate or Fed Funds Rate on Wednesday. “At the same time, on the same day, market observers will also look forward to the FOMC Economic Projections, the FOMC statement,” explained Panji
FOMC Press Conference. According to the CME FedWatch Tool, there is a 98 percent chance that the central bank will maintain its benchmark interest rate at 5.25 percent to 5.50 percent at this month’s meeting.
Impact of the Fed Meeting on Crypto Prices
The results of the FOMC will have a direct impact, potentially causing significant volatility in Crypto Asset prices.
Meanwhile, if you look at June 2023, the Fed also held back interest rates, where at that time the benchmark interest rate was in the range of 5.00 percent to 5.25 percent and succeeded in pushing Bitcoin to a price of USD 31,400 or the equivalent of IDR 483 million last June. .
“So it is not impossible that if this week the Fed again holds its benchmark interest rate in the range of 5.25 percent to 5.50 percent, it should have a positive impact on crypto prices,” said Panji.
Domestic Sentiment
Meanwhile, domestically, the growth in adoption of Crypto Assets in Indonesia has increased even though in 2022 it was overshadowed by various negative sentiments in the industry such as the failure of FTX and pressure from the global economic side, especially high inflation in 2022 which caused the price of the majority of cryptocurrencies to fall.
