A Decrease In US Inflation Gives Fresh Wind To Crypto Market

Illustration (Photo: Doc. ANTARA)

JAKARTA - Indodax CEO Oscar Darmawan said the decline in US inflation provides fresh air for the crypto market, especially Bitcoin (BTC).

Data from Trading Economics and the US Bureau of Labor Statistics show that the Consumer Price Index (CPI) is lower than expected, which is 3.4 percent, signaling a decrease in inflationary pressures.

This affected the price of BTC which managed to stabilize above the figure of 65 thousand US dollars and had touched 66 thousand US dollars after experiencing volatility this week.

As of Saturday, May 18, BTC touched a price of 66,967 US dollars.

"This strengthens investor confidence in Bitcoin's potential as a hedge against inflation and assets capable of offering higher returns amid global economic uncertainty," he said as quoted by ANTARA, Sunday, May 19.

The increase in BTC prices is also supported by increased trade activity among retail investors and institutions.

According to him, the increase in funding rates shows an increase in purchases with leverage in many retail exchanges. This momentum is said to be highly anticipated by investors every month.

The determination of the decline or increase in inflation in the United States has a significant impact on interest rates globally. In this context, investors will make the US inflation rate one of the main references in determining the most appropriate investment instruments to choose from," he said.

In this regard, Oscar said a moment like this is important to take advantage of by investing in the Dollar Cost Averaging (DCA) technique through the Regular Investment' feature in Indodaz, because it will help in managing investment and providing profits at moments like now.

The DCA technique allows investors to buy crypto regularly with the same amount every month, thereby reducing the risk and impact of market volatility. This is a very effective strategy in the long term to accumulate assets at lower average costs," Oscar said.