Crypto Market Motion Projection In June: Bitcoin Under The Fed's Policy

Bitcoin projection in the middle of the Fed (photo; Pixabay) policy

JAKARTA - Throughout May, the crypto market was experiencing a volatile movement and tended to decline. Even month-to-date (MTD) the price of Bitcoin (BTC) decreased by around US$1,439 (-5,03%) from its initial position in May at around US$28,640.

Seeing the declining performance of the crypto market, especially Bitcoin, since the beginning of this year, Tokocrypto's external trader, Fyqieh Fachrur saw that overall the potential of the crypto market in June was still in a bullish trend for the short term.

A sentiment that is still strong in pushing for crypto price movements is the debt ceiling agreement, aka the United States (US) government debt ceiling, which is in the middle of being a breath of fresh air for investors and crypto industry players in June.

According to Fyqieh, if the US increases the debt ceiling, it may have a negative impact on the crypto market because the government will try to build cash balances by issuing government bonds.

"The issuance of debt to increase revenue will have the opposite effect, where money will be transferred from cash and at-risk assets to US government bonds, especially as yields of this instrument increase to offset supply increases," explained Fyqieh.

But on the other hand, Bitcoin investors don't need to panic about the polemic of the debt ceiling. Because this is a recurring thing and will happen at any time due.

If the US government decides to continue to increase the debt ceiling, then in the long term, the dollar value is likely to be evaluated, which could benefit the price of Bitcoin and other risky assets.

For this reason, Fyqieh suggested that investors be wise to take a calm stance. Bitcoin investors can assess sideways volatility and tend to be bored. Investors should diversify portfolios by adding various crypto assets. This can help reduce risk and ensure that portfolios don't depend on just one type of asset.

"Considering taking a long-term approach to investment. The crypto market is known for its volatility, so be prepared to face short-term price fluctuations and don't be too affected by daily movements," suggested Fyqieh.

In addition, long-term investors can start saving or DCA (dollar cost averaging) regularly for the next 1 year after halling Bitcoin. This is a very good sentiment. The key is to be consistent in doing DCA and keep doing research.