JAKARTA - The crypto market is entering its new year with a bullish spirit. Because, Bitcoin (BTC), which is the largest cryptocurrency with a market cap, was able to gain more than 35 percent profit in the first month of 2023.
Even so, Tokocrypto sees that the market is starting to fall towards the end of January 2023. Then, what about the projected crypto market in February?
Based on the Bitcoin Monthly Return index in the last two years, the Tokocrypto Research team sees February as likely still a good month for the crypto market. Especially when Bitcoin was able to get close to a record gain of more than 40 percent at the start of the last year in January 2013.
"February is optimistic that the crypto market is still in a bullish trend. Despite the macroeconomic situation going forward, from the Bitcoin Monthly Returns index, BTC is always profitable this February. However, investors should also be wary of the effects of the Fed's monetary policy," explained Tokocrypto VP Corporate Communication Rieka Handayani in her explanation.
Ahead of the Federal Open Market Committee (FOMC) meeting which is one of the determining moments for the world's economic movement, the crypto market appears to be correct and investors tend to choose to wait and see.
The FOMC will take place from January 31 to February 1, 2023. It is likely that the Fed will again raise interest rates, but not too aggressive with a target of up 25 basis points (4.5% to 4.75%).
While nothing can be said for sure until the FOMC meeting is over, many hope things get better.
"Despite the increase in interest rates, investors will also focus on comments made by Fed Chairman Jerome Powell about economic resilience, job market, macro recovery in the US. If he hints at the steps of smoothing forward, then the short-term price hike is expected to materialize."
Thus, market activity can soar after the FOMC discussion is complete considering the results are positive. However, if the interest rate increase is higher than anticipated, there may be a larger sell-off.
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