Analysts Call The Fed's Easing Expectations Push For An Increase In Crypto Prices

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JAKARTA - The crypto market has moved up again after the announcement of US CPI inflation data for July 2025. Bitcoin (BTC) moved up slightly from the level of 118,000-119,000 US dollars (Rp1.91-1.92 billion).

Apart from Bitcoin, several other altcoins also experienced significant increases, such as Ethereum (ETH), Solana (SOL), and Chainlink (LINK). ETH rose 7% more to touch the price level of $4,600 (Rp74.4 million), while SOL and LINK rose more than 12% in the last 24 hours.

Reku analyst, Fahmi Almuttaqin, revealed that this increase was driven by expectations of cutting the Fed interest rate, plus optimism about Big Tech's large investment in the AI, cloud, and data center sectors.

"This condition reflects the sentiments and beliefs of market participants that although core inflation has not dropped as expected, a lower overall increase in inflation than expected will provide space for the Fed to relax policy," explained Fahmi.

According to him, this is a positive sentiment for risky assets, including crypto and US stocks, although volatility still needs to be watched out for ahead of the meeting of Jackson Hole and FOMC September.

Fahmi added that this momentum could encourage investors' interest in increasing allocations to crypto, especially if the monetary easing policy officially begins. However, he reminded that volatility remains high ahead of the meeting of Jackson Hole and FOMC next month.