Ajaib: Bitcoin Movement This Week Overshadowed By US Inflation Data Release

JAKARTA - Based on data from CoinMarketCap, on Tuesday, September 9, Bitcoin (BTC) is perched at the level of 111,600 US dollars (Rp1.82 billion) and has increased by more than 0.60% in the last 24 hours.

Ajaib's Financial Expert, Panji Yudha said that this week's Bitcoin market movement will be heavily influenced by some US economic data, especially inflation reports that will be released.

"After a relatively calm week, investors are again watching the signal from Wall Street, where the debate between the weakening labor market data and rising inflationary pressures is heating up," Panji said in a statement.

In August, the US Bureau of Labor Statistics reported that nonfarm payroll only increased by 22,000 jobs, well below the expectations of economists who estimated an increase of 75,000 positions.

This figure is the latest evidence of the weakening labor market previously required by the Fed Chairman, Jerome Powell.

"This weak data makes the market believe 100% that the Fed will cut interest rates at the September 16-17 meeting," he added.

However, hopes of lowering this interest rate could be threatened by inflation reports that will be released this week. Thus, these conditions could reverse market sentiment and suppress risky assets such as stocks and Bitcoins.

"The prospect of cutting interest rates so far is the dominant factor that maintains positive sentiment in the stock market," explained Panji further.

Panji predicts Bitcoin has the potential to move in the range of 110,000 US$112,000 (Rp1.79Rp1.82 billion). Meanwhile, Ethereum is estimated to be at the level of 4,1004,400 US dollars (Rp66.9Rp71.7 million).