Analysts Call Crypto Asset Investment More Unstable Ahead Of The US Election, How Come?

Illustration of crypto assets (photo: Unsplash)

JAKARTA - The investment climate in various instruments including crypto assets continues to move volatilely ahead of the United States presidential election, coupled with the increasing uncertainty in the election results.

Bitcoin dropped from the level of 72,800 US dollars (Rp1.14 billion) on October 31 to touch the level of 69,100 US dollars (Rp1.08 billion) on November 1, along with a decrease in Donald Trump's winning chance on the preduction market platform from 66% to 62%.

However, crypto analyst from Reku, Fahmi Almuttaqin said that the uncertainty of this market would only be temporary. According to him, the potential price hike after the US election and meeting of Fed officials could still present opportunities.

Fahmi explained that there are at least three factors that have the potential to become positive catalysts in the crypto market, including a 25-base-point reduction in the Fed interest rate.

The second, said Fahmi, is that certainty of the regulatory roadmap related to the crypto market and industry can also encourage positive potential in this digital asset.

The crypto industry is estimated to have donated at least 119 million US dollars to both Donald Trump and Kamala Harris in this election. This could contribute to the increasing cooperation between US regulators and crypto industry players who have the potential to create a more constructive regulatory environment," he explained.

Kemudian yang terakhir adalah meningkatnya keseriusan AS untuk mengembangkan pasar dan industri kripto sebagai instrumen investasi global yang strategis saat ini.

However, despite the bullish potential, Fahmi noted, the development of conflicts against election results such as allegations of fraud by one of the contested political parties has the potential to contain these positive sentiments in order to develop further.

"Therefore, it is important for investors to strategically manage their investment portfolio by considering the possibilities of various scenarios that can occur," he concluded.