Bitcoin Is Back Bullish, Crypto Investors Are Excited Again

Illustration of Bitcoin crypto assets (photo: pexels)

JAKARTA - The price of Bitcoin (BTC) jumped again to US$66.000 or around Rp. 1.05 billion, on Thursday, May 16 at around 00:00 WIB. With an increase of more than 7 percent in the past week.

Tokocrypto trader, Fyqieh Fachrur said that the increase in Bitcoin prices made investors and traders excited to enter the crypto market further.

According to Fyqieh, the increase in Bitcoin prices was driven by a lower report on US core inflation and increased institutional investment in Bitcoin ETFs.

"The correlation between lower inflation and increased investment in digital assets suggests that investors may see Bitcoin as a hedge against economic instability," Fyqieh said in a statement.

Furthermore, Fyqieh explained that a good inflation rate also marks the potential for future US interest rate reductions. Although the Fed has adopted a careful wait and see' approach, recent data may accelerate its timeframe.

"However, there are still concerns about the speed of decreasing inflation, which could limit the scope of lower interest rates this year," he continued.

Not only Bitcoin, memecoins or meme coins have also soared following the decline in US inflation. According to Fyqieh, memecoins are huge beneficiaries because lower interest rates mean increased sentiment when investors move funds to risky assets.

In addition, when Bitcoin and the crypto market are stagnant, meme coins are the investor's hope for profit.

"In a situation where the crypto market tends to be quiet, investors prefer to react to the memecoin sector. Many investors and traders are speculating on memecoin to get profit. Of course this moment is a common thing in the market," he explained.

However, Fyqieh expects investors to avoid all-in in memecoins because of the potential for high fluctuations and no guarantees for long-term investments.