US Regulation Discourse Makes Crypto Market Unstable, Investors Asked To Be More Flexible

Illustration of crypto assets (photo: Unsplash)

JAKARTA - The crypto market was again corrected to 97 thousand US dollars (Rp1.58 billion) after briefly greening after Donald Trump announced the postponement of the 25 percent tariff for imports from Mexico and Canada for 30 days.

The correction came after David Sacks' statement, as Trump's AI & Crypto Czar-selected at the White House, regarding stablecoin regulations that would be the top priority of the US government.

Reku analyst Fahmi Almuttaqin said the US policy development factor has a more significant role at this time in influencing the dynamics that occur in global investment markets such as crypto markets and US stocks.

However, according to Fahmi, the discourse regarding the US national Bitcoin reserves that Sacks has also mentioned will be one of the sentiments that could potentially develop if Trump re-expresses his optimism for the proposal.

Fahmi also said that the high dynamics in the current financial market are in line with their outlook, where the increasingly dominant US position in the crypto market has also increased the potential impact crypto markets can have on any economic and political dynamics that occur in the US.

However, the existing trend is still quite positive with the potential for the execution of US pro-crypto policies. The US discourse to increase ownership of its crypto assets with plans such as the creation of digital assets stockpiles, if they can be realized, will be a very strong positive catalyst for the crypto market this year," he added.

In general, Fahmi sees that the current dynamics require investors to be more agile in managing their investment portfolios, by monitoring more actively and adjusting the portfolio position to be more adaptive to every development of the situation.

Investors can further optimize their investment performance and mitigate existing potential risks. Diversification to a number of potential instruments and sectors, such as by combining US crypto assets and Shares, is one of the interesting options," he said.