Crypto Market Strengthens Impact Of US-China Temporarily Lowering Rates Agreement

The crypto asset market has again shown optimism after trade tensions between the United States and China began to subside, and agreed to a temporary drop in tariffs for 90 days, with a total cuts of 115%.

This positive sentiment then immediately spread to the crypto market. On Monday, May 12, Bitcoin recorded an increase of 8.27% had touched its highest level in nearly four months in the range of 105,800 US dollars (Rp1.76 billion), before it was slightly corrected to around 102,827 US dollars (Rp1.71 billion).

Ajaib's Financial Expert, Panji Yudha said that the circulation of tensions has provided space for crypto assets to rally in recent days.

Meski demikian, investor perlu tetap waspada aksi profit taking jangka pendek. Dari analisaan teknikal, Momentum bullish berpotensi berlanjut apabila BTC mampu bertahan di atas MA-20 97.645 dolar AS (Rp1,62 miliar) dan support psikos 100,000 dolar AS (Rp1,66 miliar), kata Panji.

The focus of investors is now shifting to the release of US inflation data, particularly the Consumer Price Index (CPI) for April which will be announced on May 13.

Projections are currently showing an annual decline to 2.3%. If it complies with expectations, it could reinforce the view that US inflation is sloping, opening up opportunities for a looser interest rate policy going forward.

"The decline in inflation has the potential to be a catalyst for Bitcoin to continue the upward trend, especially if there is no new disruption from the geopolitical side or trade policy," he explained.

However, liquidity factors still support the market. With the current dynamics, Panji sees that the crypto market is in a relatively strong position to continue strengthening.

"However, the room for volatility remains open, especially ahead of the release of inflation data and other macro developments," concluded Panji.