Crypto Market Drops, Investors Wary of Fed's Attitude to US Inflation Data

By: Firlas on May 29, 2023

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Liputan6.com, Jakarta - Pasar kripto akhirnya kembali lesu pada perdagangan Selasa pagi(11/10/2022). Hal ini juga sejalan indeks saham Amerika Serikat (AS) yang berkinerja buruk, setelah Gedung Putih memperkenalkan aturan baru yang membatasi ekspor perusahaan chip semikonduktor AS untuk menjual produknya.

The decline in US stock indices made little impact on the crypto market which became less enthusiastic this morning. 

Investors also tend to wait and see to wait for the release of two major reports this week, namely the minutes of the Fed meeting (minutes of meeting) September released on Wednesday, October 12, 2022 and US inflation data for September which will follow the day after.

Tokocrypto trader Afid Sugiono said the Fed's MoM is very important because it can give a signal to the institution's monetary policy going forward. 

“If you keep raising interest rates, it will affect the movement of crypto assets. Macroeconomic indicators continue to influence investors' risk appetite, a crucial factor for those wishing to enter or exit the risky asset market, including crypto," said Afid in a daily market analysis received by Liputan6.com, Tuesday (11/10/2022).

Afid said that Consumer Price Index (CPI) data is also important for crypto movements. The CPI is often used to measure the inflation rate. If US inflation picks up further, the demand for crypto assets may be negatively impacted.

 From the technical side, Afid explained that the average Bitcoin trading volume is still below the average for the last nine days. This indicates investors are hesitant to be bullish or bearish. It can be seen from the fear and greed index of the crypto market which is still below level 30 with the category of extreme fear.

“Bitcoin now seems to be testing its support level to drop below USD 19,000 or around Rp. 291.7 million. If the breakdown is successful, the nearest downside target is USD 18,958 (Rp 291 million).

Meanwhile, for Ethereum Afid said, Ethereum's major support is at the level of USD 1,128 to USD 1,262 which is the last bastion of ETH to hold back the rate of price decline, if the nearest support breakdown occurs.

Previously, the price of bitcoin and other top cryptocurrencies was observed to have a uniform movement on Tuesday (11/10/2022). The majority of cryptocurrencies are back in the red after strengthening earlier in the week.

Based on data from Coinmarketcap, Tuesday morning, October 11, 2022, the crypto with the largest market capitalization, Bitcoin (BTC) again weakened 1.42 percent in 24 hours and 2.04 percent a week.

Currently, the price of Bitcoin is at the level of USD 19,136 per coin or equivalent to Rp. 293.1 million (assuming an exchange rate of Rp. 15,320 per US dollar). 

Ethereum (ETH) also fell again this morning. ETH fell 1.83 percent in 24 hours and 1.78 percent in the week. That way, ETH is currently at the level of USD 1,293 per coin. 

The next cryptocurrency, Binance coin (BNB) also sank this morning. In the last 24 hours BNB fell 1.90 percent and 4.73 percent a week. This makes BNB priced at USD 272.45 per coin. 

Then Cardano, fell again. In the last one day ADA fell 3.82 percent and 4.97 percent a week. Thus, ADA is at USD 0.4058 per coin.

Meanwhile, Solana (SOL) is again perched in the red zone. Throughout the last one day SOL weakened 1.87 percent and 2.32 percent a week. Currently, the price of SOL is at the level of USD 32.11 per coin.