Crypto Market Faces Uncertainty In The Direction Of Lowering Interest Rates Ahead Of FOMC

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JAKARTA - Ahead of the Federal Open Market Committee (FOMC) on July 29, 2025, global financial markets, including crypto and US stocks, are faced with uncertainty in the direction of lower interest rates.

Reku analyst Fahmi Almuttaqin said the situation was also reflected in the movement of crypto assets, where when trends in the price of Bitcoin and altcoins such as Ethereum were quite solid, profit-taking began to color every existing rally, not only on Bitcoin, but also on ETH.

"Some of the old investors seem to reduce the risk exposure that is likely to be carried out to wait for further clarity on the direction of the Fed's monetary policy," Fahmi explained in a statement.

This caution sentiment was felt, especially after President Donald Trump made a rare visit to the Federal Reserve headquarters on July 24 which was the US president's first visit to the Fed in two decades.

However, despite these uncertainties, the volume of trading and the flow of funds into the crypto market so far this year, particularly in the last three months, has shown a significant increase.

According to JPMorgan's latest report, the inflow to crypto assets has reached 60 billion US dollars throughout the year, up nearly 50% from the end of May update.

Fahmi considers this phenomenon to indicate an increasing interest in global investors in crypto. Not only Bitcoin, investors' interest has also penetrated further into altcoins.

Stablecoins, Layer 1, AI, Memecoin, and DeFi have become the sectors that have recorded the highest trading volume in recent months. The trend of ETH adoption as a corporate treasury asset and the main foundation of the DeFi ecosystem also seems to be growing.

Some well-known asset managers have even begun exploring the integration of staking features with spot ETF products like Ethereum. This indicates the proposition of asset value like Ethereum as a unique yield generating asset and can provide attractive diversification value for investors, "said Fahmi.

The potential strategy for investors, according to Fahmi, is to keep an eye on the dynamics of core inflation, the Fed's communication signal after the meeting, the development of crypto regulation, as well as the trend of launching new investment products such as altcoin-based staking ETFs.

No less important, the potential to continue capital rotation from Bitcoin to altcoins or other risky assets should be watched out for, especially if volatility increases," he concluded.