Trump Shooting Incident And CPI Data Drop: How Does Crypto Market Reactions Reaction?

Illustration. (Photo: Unsplash)

JAKARTA - Donald Trump, became a victim of a shooting during a campaign in Pennsylvania. This incident not only dominates headlines around the world but also causes volatility in the crypto market on weekends.

The shooting took place on July 13, 2024. During his first presidency, Trump was known as a vocal critic of Bitcoin and the crypto industry as a whole. Not surprisingly, this shooting has the potential to impact the crypto market.

On the other hand, several figures such as Tesla CEO Elon Musk and Tron Founder Justin Sun have officially supported Donald Trump in his re-nomination as US President. This support comes after the assassination attempt against Trump.

The support from the two of them for Donald Trump adds a new color to the dynamics of the crypto market, and is a hope for a more crypto-friendly policy if Trump is re-elected. It can be seen from the price of Bitcoin, which was previously priced at 58,300 US dollars to 63,015 US dollars.

Previously, the results of the US CPI's decision were also sufficient to have an impact on the crypto market. Inflation in the US in June, as measured by CPI changes, decreased to 3 percent year-on-year (YoY) according to data at the US Bureau of Statistics.

This figure is surprising to the market because it is lower than their expectations of 3.1 percent. This decline is also a decrease from 3.3 percent recorded in May, showing a 0.1 percent decline from the previous month.

INDODAX CEO, Oscar Darmawan gave his views on this situation. According to him, CPI data is one of the economic indicators that market participants pay close attention to, including crypto investors.

"The changes in inflation rates measured through CPI can affect the Federal Reserve's monetary policy, which ultimately has an impact on the price movements of crypto assets. The corrections that occurred in the crypto market when CPI data was released were a reasonable reaction given the uncertainty," he said, in a written statement, Tuesday, July 16.

Meanwhile, regarding the condition of the crypto market after the shooting incident against a candidate for President of the United States, Donald Trump.

"We need to understand that crypto markets often react to big news that has the potential to have an impact on geopolitical stability and the global economy," Oscar said.

"At this point, I see that the incident has the potential to create quite high uncertainty in financial markets, including crypto markets. Market reactions can be volatile in the short term as investors tend to seek safety in uncertain situations," Oscar added.

Oscar added that currently markets tend to remain positive in the short term, BTC is up from 58,300 US dollars to 63,015 US dollars in the hours after the event, showing significant volatility while dismissing uncertainty and concerns over the potential negative.

At this level, Bitcoin and other crypto assets often show rapid resilience and recovery after the volatility period.

"We will continue to monitor developments and provide the latest information to our investors. As CEO of INDODAX, I always emphasize the importance of an in-depth understanding of factors affecting the crypto market. In situations like this, accurate information and decisions based on data are key to managing investment portfolios well. Investors must be aware of existing news and stay focused on the fundamental assets they have," he said.

INDODAX continues to strive to provide relevant education and information to users. INDODAX believes that good transparency and understanding of the market can help investors make wiser decisions. This incident in the US reminds us that the crypto market, despite offering great opportunities, also has risks that need to be managed carefully.

"At INDODAX, we are committed to continuing to support the growth of the crypto ecosystem in Indonesia by providing a safe and reliable platform. We will also continue to strengthen education to the public about the benefits and risks of investing in crypto, so that they can make more informational and wise decisions," explained Oscar.

Information and education about the economy and crypto are urgently needed as a reference for decision making in investing. INDODAX provides the INDODAX Academy platform as a free learning platform that can be accessed through the INDODAX website, Youtube, and social media. All can learn from zero to being proficient in INDODAX Academy.