Crypto Market Greens Again After The Fed Keeps Interest Rates

Bitcoin illustration (photo: Unsplash)

JAKARTA - The US crypto market and shares began to strengthen after a meeting of Fed officials to maintain a fixed interest rate at the level of 4.25-4.50 percent. Bitcoin also managed to penetrate the level of US$83,000 (Rp1.36 billion) and was traded in the area of US$87.000 (Rp1.43 billion).

Responding to these conditions, Analyst Reku, Fahmi Almuttaqin said that easing investor concerns had prompted optimistic reactions to risky assets such as cryptocurrencies and US stocks.

"Be careful but optimistic that the Fed will also provide a signal of relief to the market and increase investor confidence," explained Fahmi in a written statement received on Thursday, March 20.

However, Fahmi added, the next Bitcoin rally may still be quite influenced by how the market views risks amid potential inflation that is still looming. The positive sentiment from the development of US government crypto regulation could be a catalyst that could potentially encourage further increases.

"However, the delayed reduction in interest rates and tariff-driven volatility can still suppress the crypto market, especially in the short term. Bitcoin correlations with US stocks that are high enough are currently still a concern for investors," he added.

Fahmi also explained that the current situation could also potentially increase the enthusiasm of institutional investors for Bitcoin and Ethereum.

"It is possible that soon the launch of other crypto asset spot ETFs such as Solanam towards the end of this year will also have the potential to strengthen the altcoin narrative. Altcoins, which in general can still not experience much increase, have the potential to attract market attention, especially if there is an interesting narrative," he continued.

However, amid existing optimism, Fahmi appealed to investors to remain careful in seeing developments that might occur in the future, despite the Fed's optimism for inflation and US economic power.