JAKARTA - Global markets and crypto assets are experiencing significant consolidation following the announcement of the Federal Reserve's latest monetary policy (The Fed) and ahead of US President Donald Trump's trading meeting with Chinese President Xi Jinping. Global investors are preparing to face potential high volatility, considering the direction of interest rates and geopolitical risks that are still lurking.
The Fed cut the benchmark interest rate by 25 basis points to 3.75-4 percent, according to market expectations. Although this move is usually a positive catalyst for risky assets, the price of Bitcoin has actually corrected from $116,400 to US$109,200, reflecting the phenomenon of buy the rumors, sell the news', where investors who have previously purchased made a realization of profits after the official announcement.
On the other hand, US trade tensions "China" are increasing the risk layer, holding the flow of capital to risky assets. Although partial agreements were partially reached, a history of negotiations between the two countries showed that the final result often did not match market expectations. Trump's meeting "Xi" in Busan, South Korea, lasted more than 1.5 hours and became the first face-to-face meeting since Trump returned to office.
Trump announced the reduction in Chinese import rates and stated that the issue of access to raw materials for rare earths had been resolved. Xi stressed that the two countries have reached a consensus to resolve major trade issues and will cooperate in the fields of illegal immigration, cyber fraud, money laundering, and artificial intelligence.
Amid global dynamics, crypto assets are experiencing moderate corrections, with Bitcoin (BTC) and Ethereum (ETH) down 1.66 percent and 1.64 percent, respectively, so market capitalization is down about 0.77 percent. This phenomenon shows that digital asset prices are not only influenced by flower rate cuts, but also by expectations of global economic growth and growing geopolitical sentiment.
INDODAX Vice President, Antony Kusuma said, the current price consolidation actually reflects the digital market adaptation mechanism for global macroeconomic conditions that are changing rapidly.
"Investors no longer only react to interest rate figures or monetary policy, but begin to assess the overall context of geopolitical, institutional capital flows, to market psychology. The corrections that occurred after the Fed's announcement are a clear example of increasingly rational market behavior," he said, in a written statement, Friday, October 31.
He added that Trump'Xi's meeting emphasized that geopolitical factors were still one of the main drivers of investor sentiment.
"The tariff agreement and resolution of the rare earths issue gave a positive signal, but the market tends to wait for real implementation before it actually reacts. Wise crypto investors will take advantage of this volatility to accumulate, not just following the price trend," he explained.
According to Antony, crypto investors should look at volatility as a strategic opportunity.
Digital markets are not like traditional markets; sharp price changes create moments for investors to optimize portfolios. The key is discipline, diversification, and understanding of asset fundamentals. Those who are able to read the global economic context and institutional behavior will be better prepared to face short-term uncertainty, as well as maximize the potential for long-term gains," he explained.
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Furthermore, Antony emphasized the importance of understanding the interaction between monetary policy and digital market sentiment.
"The cut in interest rates and Trump-Xi Jinping meetings signals liquidity, but the effect is always relative to real economic conditions and investor expectations. Investors who only see nominal numbers can be dragged away by market emotions. Those who succeed are those who are able to assess risks, calculate probabilities, and take advantage of price corrections as a measurable accumulation strategy," he explained.
The Fed's combination of monetary policy and international trade issues create pressure on digital assets, as well as offer opportunities for disciplined investors. Institutional investors show maturity by utilizing corrections to accumulation, while retail investors are advised to always update information, adapt strategies, and carry out independent analysis before making decisions.
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