Risk On Investment Instruments Start To Rise, Uptober Will Become A Reality?

Illustration of Bitcoin (photo: Pixabay)

JAKARTA - After stagnant last week, risk-on investment instruments such as US stocks and crypto assets were seen having recorded significant positive performance earlier this week.

According to crypto analyst Reku Fahmi Almuttaqin, this positive performance is driven by stable inflationary data and the Fed's policy of lowering interest rates in September 2024.

Launching CoinMarketCap on Wednesday, October 16, Bitcoin has shot up more than 14 percent in the past month and 7.49 percent in the past seven days at the level of US$67,000 or equivalent to Rp1.042 billion.

This increase was also followed by other crypto assets such as Ethereum which increased 7 percent over the week reaching 2,615 do you US dollars (Rp40.5 thousand) and Solana up 7.57 percent at the level of 154 US dollars (Rp2.3 thousand).

Fahmi considered that although investors were still wary of inflation, positive trends began to emerge. He emphasized the importance of inflationary data on Personal Shopping Prices (PCE) which will be released on October 31, which could affect the interest rate policy further.

"The current situation could potentially be the beginning of this condition which could be a catalyst for the increasing flow of funds entering the US and crypto stock markets," he said.

In addition, ahead of the US presidential election, US and Bitcoin stocks are expected to continue to strengthen, following historical trends in which markets tend to increase after elections.

Historically, the crypto market also tends to experience a positive trend with a fairly strong rally after the US presidential election, explained Fahmi further.

Reku invites investors to be wise in investing by paying attention to the company's fundamentals and using the Dollar-Cost Averaging (DCA) strategy to mitigate high price fluctuations.