Bitcoin Recovers To US$123,000 After Dovish Signal, Market Waits For Powell's Speech

JAKARTA - This morning, Bitcoin showed little recovery at the level of US$123,000 (Rp2.03 billion) after the release of the FOMC meeting minutes on Wednesday, October 8 evening. After having recorded the highest peak at 126,199 US dollars (Rp2.08 billion) on Monday.

The Financial Expert Ajaib, Panji Yudha, saw the Fed meeting minutes reveal a strong dovish signal from central bank officials who are strongly inclined to lower interest rates.

The thin majority of FOMC members (10 to 9) expect two more interest rate cuts before the end of the year. Fed officials are also starting to worry about the weakening of the labor market, although the risk of inflation is still a concern.

"However, the focus of the market is now turning to a speech that will be delivered by the Governor of the Fed, Jerome Powell," Panji said in a statement.

According to him, the market will pay close attention to additional instructions on the timing and speed of subsequent interest rates, and Powell's comments will be critical as they could affect the value of the US Dollar and global risk sentiment.

"Determining whether the BTC recovery this morning will continue or be under pressure again by macro concerns," he added.

On the other hand, even though the net inflow to Bitcoin Spot ETF slightly slowed to USD 875.61 million on October 7 down from a record USD 1.21 billion the day before, Panji assessed that the figure remained very large, signaling the momentum of institutional purchases was still strong.