The Decreased US Inflation Becomes Potential Investors Entering Crypto Instruments

Illustration. (Photo: Doc. Antara)

JAKARTA - Crypto Analyst Reku Fahmi Almuttaqin views that the decline in US inflation also illustrates positive potential for investors to enter instruments that are more risky, such as crypto assets.

"Because, the signal of easing US economic policies can potentially attract investors to invest in instruments that tend to be risky, such as crypto. However, with very high dynamics in the crypto market, investors need to be careful and always make investment decisions wisely," Fahmi said in a statement in Jakarta, quoted from Antara, Wednesday, July 4.

For information, inflation in the US Personal Shopping Price Index (PCE) fell to 2.6 percent on an annual basis (YoY) in May 2024 from 2.7 percent in April 2024. Then core PCE rose by 0.1 percent on a monthly basis (MOM) in May 2024 or the smallest increase since November 2023.

After releasing PCE inflation data at the end of last week, Reku noted, Bitcoin price recovery began to show and an initial signal of reversing price trends. Bitcoin greened nearly 6 percent after the release of the data from the level of 60,000 US dollars to 63,500 on Monday July 1 and Tuesday 2 July after weakening over the previous few weeks.

Reku noted that price recovery is also reflected in a number of other crypto assets, especially crypto assets from the infrastructure sector such as ENS, ZRO, TAIKO, and coin memes such as WIF, POPCAT, WEN, and MOG. In addition, major crypto assets such as Solana (SOL) and Toncoin (TON) were also appreciated. On Wednesday afternoon, Bitcoin was corrected and was at the level of 60,900 US dollars.

Fahmi said that the dynamics that have occurred recently have increasingly highlighted the impact of the development of the US economic situation on the crypto market.

Several indicators such as the Alts Buy Signal compiled by Cryptochoryo on the Dune platform, currently indicate a strong buy situation for altcoins at an unprecedented level. This, notes Reku, indicates the huge potential that exists in alternative crypto assets other than Bitcoins at current conditions.

Nevertheless, Fahmi also reminded that altcoins tend to have higher risks than Bitcoin. Apart from the greater market cap and Bitcoin liquidity, the popularity of altcoins is also not as high as Bitcoin.

However, currently, not a few altcoins have promising technology potential, which even if they reach a certain scale can have a potentially much greater value than Bitcoin can offer. The initial period of growth in the crypto industry, properly in other industries, offers many interesting innovations that have the potential to shape a new way of working in the future, "said Fahmi.

In the midst of the existing potential, Reku also continues to urge investors to make careful and not rushed decisions. Investors can save regularly and monitor market conditions regularly. In addition, investors can also diversify to other altcoins while taking advantage of the features provided by Reku.