Bitcoin Recovers Post-Releasing US Inflation Data, Time For Crypto Investment?

Illustration of crypto assets (photo: Unsplash)

JAKARTA - The recovery of Bitcoin prices and the initial signal of a reversal in the direction of price trends began to be seen after the release of the latest US Personal Shopping Price (PCE) inflation data last weekend.

The US PCE index in May annually fell to 2.6 percent from 2.7 percent in April, in line with economists' expectations.

After the release of the data, Bitcoin was observed to be nearly 6 percent green from levels of 60,000 US dollars (Rp982.3 million) to 63,500 US dollars (Rp1.04 billion) on July 1 and 2, after weakening over the previous few weeks.

The recovery is also reflected in a number of other crypto assets such as Solana (SOL) and Toncoin (TON), which are also appreciated. When this news was written, Bitcoin was corrected and was at the level of 60,900 US dollars (Rp997 million).

Crypto Analyst Reku, Fahmi Almuttaqin said the dynamics that have occurred recently have increasingly highlighted the influence of the development of the US economic situation on the crypto market.

"The Fed's efforts to achieve soft landing in the economy after the massive easing due to the COVID-19 pandemic are seen to have entered the final round. Victory is in sight but anything can still happen," said Fahmi.

According to him, although the market responded quite positively to these developments, the Fed's next move will most likely still depend on further inflation data and labor reports in June.

"So that price corrections may still accompany market dynamics in every increase that occurs. However, if the change in trend direction occurs, the potential for rapid recovery will be very open," added Fahmi.

However, Fahmi noted that investors still need to wait for further data developments, improving US inflation also illustrates the positive potential for investors to enter crypto asset instruments.