Bitcoin Drops After Cutting The Fed's Interest Rate, Analyst Explains The Reason

JAKARTA - The global crypto asset market underwent a policy reality check following the announcement of the Federal Open Market Committee (FOMC), which lowered the benchmark interest rate by 25 basis points on Thursday, October 30.

Ajaib noted, in the last 24 hours, Bitcoin (BTC) has weakened by approximately one percent, and currently Bitcoin (BTC) is moving at the level of $109,400 or around IDR 1.8 billion.

The Financial Expert Ajaib, Panji Yudha, explained that this decline was due to a statement by the Fed Chair, Jerome Powell, who warned that cutting the interest rate later in December was not something definite.

"This comment changed sentiment quickly," Panji said in an official statement received on Friday, October 31.

This reason made the Bitcoin barga slip into the range of 107,000'109,000 US dollars (Rp1.77-Rp1.8 billion), having previously strengthened ahead of the FOMC decision.

"Rally, which should have been driven by a cut in interest rates, failed to be triggered because the market sees the prospect of a short-term easing to be smaller," he explained.

Despite the government's shutdown delaying important economic data, Panji hopes the US-China trade deal can lower inflationary pressure and risk-off sentiment.

Because according to him, this will have the potential to provide the Fed flexibility to relax further policies by early 2026.