The Fed Is Projected To Cut Interest Rates Again, Crypto Market Prepares

INDODAX CEO, Oscar Darmawan. (Photo: Doc. INDODAX)3

JAKARTA - The Federal Reserve (The Fed) is projected to again lower interest rates at the last two policy meetings this year, namely in November and December, at 25 basis points (bp) each. This decline in interest rates is expected to have a significant impact on the global economy, including in the crypto sector.

Analyst Morgan Stanley explained that the decision was driven by global economic conditions that were still vulnerable, especially related to labor market data in the United States (US).

The Fed's 50-base point rate drop that occurred in September was bigger than originally estimated and signifies significant changes in US monetary policy.

Analysts also predict that there will still be two more interest rates in the remainder of this year, 25 bp each. This prediction is made based on the latest economic data and the development of the labor market which is still unstable.

In the face of this uncertainty, the global crypto market has shown mixed reactions. Investors, both international and domestic markets, are faced with challenges in making investment decisions amid the dynamics of global monetary policy. Interest rates have the potential to increase interest in risky assets, including crypto assets, as investors seek diversified opportunities amid low returns from traditional assets.

Market observers also note that the Fed's policy of lowering interest rates could affect the US dollar exchange rate, which in turn will affect crypto asset prices globally. Changes in the value of the US dollar, both strengthening and weakening, will have an impact on investor sentiment towards digital currencies.

Bitcoin, which is often seen as an alternative asset when economic uncertainty occurs, will most likely experience movements influenced by this dynamic.

Indodax CEO Oscar Darmawan responded to this situation with optimism. According to him, the Fed's decline in interest rates has the potential to provide a positive boost to the crypto asset market.

looser liquidity conditions usually encourage investors to be more interested in risky assets, including cryptocurrencies. However, we at Indodax always encourage users to prioritize good risk management in every investment decision," he explained, in a written statement, Tuesday, October 8.

Oscar also stated that global monetary policy, such as the Fed's decision, was only one of many factors that crypto investors had to consider.

"The fundamental factors of crypto assets themselves must remain a major consideration in long-term investments, despite opportunities that are open to global economic policy changes," he said.

Oscar Darmawan also emphasized the importance for investors not only to focus on global monetary policy but also to see the trend of blockchain technology adoption and innovation in the crypto sector.

Blockchain technology continues to grow rapidly, creating new opportunities that can change the way we transact. Investors need to take advantage of these developments wisely and follow technological trends that can affect the value of crypto assets," he explained.

In addition, Oscar also reminded that the crypto market is very dynamic and can be influenced by other factors, including regulations from various countries.

The increasingly clear regulation in various regions, including in Indonesia, has the potential to provide further stability for the crypto market. This could be a great opportunity for investors to invest with a higher sense of security, because the crypto ecosystem is more regular and transparent," said Oscar.

Indodax is also committed to providing adequate education for its users in order to make wiser investment decisions amid the dynamics of the global economy.

We continue to support the crypto community in Indonesia by providing accurate and up-to-date information through the INDODAX Academy, which can be accessed for free through various platforms such as websites, YouTube, and social media. We believe that education is key to facing global economic developments and its impact on the crypto market," concluded Oscar.