Crypto Future Predictions: Ahead of US Inflation Data Release, Can Bitcoin Rise?

Bitcoin price prediction (photo: Unsplash)

JAKARTA - The crypto asset market started the second week of September perched in the red zone. As of Tuesday, September 12 morning, Bitcoin was trading again at 25,200 US dollars (IDR 386.6 million), weakening by around 2.09 percent in the last 24 hours.

Financial Expert Ajaib Crypto Panji Yudha predicts that if Bitcoin fails to stay above 25,000 US dollars (IDR 383 million), then BTC has the potential to continue weakening, to a price range of 23,500 - 24,000 US dollars (IDR 360 - 368.2 million).

According to Panji, one of the reasons crypto assets are in the red zone is because of the wait-and-see attitude of market players, and waiting for the release of more US inflation data this week.

“Investors this week are looking to the release of more US inflation data this week for clues on upcoming interest rate policy.” said Panji in his official statement.

US Inflation Data for the August 2023 period is scheduled for release on Wednesday, September 13 at 19.30 p.m. Western Indonesian Time (WIB). Currently, the US inflation rate for the August period is expected to jump to 3.6 percent on an annual basis (yoy), higher than the previous month's 3.2 percent yoy.

"If annual inflation rises according to estimates, this will be the second increase that will occur after reaching its lowest point of 3 percent yoy last June. However, the increase will also widen the gap with the US central bank's inflation target, The Federal Reserve (The Fed) of around 2 percent," explained Panji.

Furthermore, Panji believes that the results of this week's inflation data will have an impact on the crypto market. If the results are above expectations, it will have a negative impact on crypto assets.

"And if it matches or is lower than market estimates, then at least it will be able to keep Bitcoin from falling lower than the current price," he said.

However, apart from inflation data, policies related to US interest rates will still be a factor driving crypto asset prices in the future because they will determine investors' decisions when investing.

The current weakening in the crypto market is caused by various factors. However, according to him, momentum like this could be the right time for long-term investors to build a portfolio in crypto assets.