US Inflation Rises Slightly, What's The Fate Of The Crypto Market?

Illustration of Bitcoin (photo: Unsplash)

JAKARTA - Current investors are eagerly awaiting data on US Consumer Price Index (CPI) inflation as an important clue regarding the direction of the Federal Reserve (Fed) economic policy.

Recent data show that annual inflation rose slightly to 2.7% in November, compared to 2.6% in the previous month.

Tokocrypto trader, Fyqieh Fachrur, explained that this inflationary data provides fresh air for the crypto market, which previously recorded high volatility. The price of Bitcoin, for example, managed to penetrate the level of 101,000 US dollars or around Rp. 1.6 billion after the release of CPI data.

The crypto market started this week with a massive drop with recorded liquidity in the market. It seems that investors have taken a break, while others have posted profits after a recent strong rally, which has sparked increased volatility this week," explained Fyqieh.

Major Altcoins such as Ethereum, XRP, Solana (SOL), and Cardano (ADA) also experienced a significant increase. XRP led the rally with a 23% jump, followed by SOL at 11%, and ADA at 16%.

Not only Bitcoin and major altcoins, several other sectors also recorded positive performance. Artificial intelligence (AI)-based tokens jumped more than 7%, with some of the top AI tokens experiencing double-digit increases.

In addition, meme coins such as Dogecoin (DOGE), Shiba Inu (SHIB), and FLOKI also recorded significant increases. However, despite optimism in the market, Fyqieh reminded investors to remain cautious.

"Bitcoin has an extreme volatility history, and price corrections often occur after a major spike. It is important for investors to understand risks before making big decisions," said Fyqieh.