Reku: Crypto Assets Potentially Positive If The Fed Lowers Interest Rates In September

Illustration of crypto assets (photo: Unsplash)

JAKARTA - After the Fed decided to maintain the benchmark interest rate at 5.25-5.5 percent, Bitcoin corrected 3 percent from the price level of 66,500 US dollars (Rp1.07 billion) to 64,500 US dollars or equivalent to Rp1.04 billion.

In line with Bitcoin, several other crypto assets from Ethereum and Solana were also seen to be corrected by 2.92 percent and 3.32 percent, at the same time.

Responding to this condition, Crypto Analyst Reku, Fahmi Almuttaqin said this situation indicated a decline in optimism and confidence of market players in general.

However, according to Fahmi, if the Fed will lower its benchmark interest rate in September, the potential to increase the flow of funds into crypto assets, it is likely to be accompanied by relatively low selling pressure.

"After the German government has finished selling its Bitcoins, the remaining selling pressure to worry about by market participants is from creditors Mt. Gox and GBTC," explained Fahmi.

"Other parties, such as the United States government, which also has large amounts of Bitcoin, have not caused too much concern at this time because there are no signs they will make significant sales in the near future," he continued.

Thus, according to him, if the remaining selling pressure from Mt.Gox creditors and GBTC investors can be absorbed by the market before September, then Bitcoin is likely to be appreciated due to the potential increase in the flow of funds into crypto assets after lowering interest rates.

However, Fahmi emphasized, investors need to remember that the number of interest rate basis points will be lowered later will also be a significant variable that could affect the potential magnitude of its impact on the crypto market.

"In addition, the outlook for the next interest rate policy that will be presented at the Fed meeting in September is also a factor that investors will pay great attention to, especially if the inflation development data is still not as expected by the Fed," he concluded.

Therefore, it is important for investors to always follow the existing dynamics and developments and monitor their portfolio regularly.