Fed Rate Sentiment Drives Bitcoin Selling The crypto asset Bitcoin (BTC) is under pressure due to. The heavy selling of investors since trading on Thursday (6/1/2022).
Many crypto analysts predict that 2022 will be a much tougher period for Bitcoin.
Tokocrypto trader, Afid Sugiono, explained that Bitcoin’s decline occurred in line with the release of the US central bank’s (FOMC). Meeting minutes which decided they were ready to raise interest rates sooner than expected due to a spike in inflation.
The Fed Raising Interest
“Bitcoin’s decline was caused by the Fed raising interest rates. The meeting which was held in December 2021, the impact of the minutes of the meeting made BTC. Assets depressed since last Thursday,” he said in the video “.
According to Afid, in 2022, Bitcoin price movements will still undergo a correction based on technical analysis which shows a flag pattern. Fed Rate Sentiment Drives Bitcoin Selling If you look at the indicators or tools for reading the 50 Exponential Moving Average (EMA) price movement, there are indications that Bitcoin will decline in the 40-42K support area.
“Bitcoin now tends to have a positive sentiment. This correction can still be said to be a normal thing to happen, if we look at the 4-year cycle from January 2017, Bitcoin has decreased by 54% and then in 2021 it has decreased by 25%,” he said.
Furthermore, Afid assessed that even though the price is currently falling, Bitcoin is still the most popular crypto asset and has the largest market capitalization.
“Basically, this cryptocurrency is more widely accepted than other digital coins, especially because it has been around for a long time”.
Weighing The Impact Of The Fed’s Interest Rate Policy On The JCI
The Federal Reserve of the United States (US) will soon announce the results of its meeting on interest rate policy. Market consensus expects the Fed to raise interest rates at this month’s Federal Open Market Committee (FOMC) meeting which ends tonight.
So, what is the impact of interest rate policy on the Indonesian stock market? Head of Investment Reswara Gian Investa, Kiswoyo Adi Joe, assessed that the sentiment of the Fed’s interest rate policy towards the Composite Stock Price Index (JCI) will be minimal. He considered that market participants had already been priced in to this sentiment.
The Sentiment The Market
The sentiment that the market may watch is the issuer’s financial report for the first half of 2022. However, market players have actually calculated that the issuer’s financial report will be higher and better than last year. This is because the economy has started to rise and is gradually getting back to normal.
Kiswoyo assessed that the JCI is in a sideway phase with a fairly wide range, between 6,500 to 7,000 with a median line of 6,750. So, currently JCI will play at the level of 6,750 to 7,000.
The JCI Will Reach
It is possible that after August-September the JCI will move up. Kiswoyo projects that the JCI will reach the 7,500 level by the end of this year.
According to him, the exchange rate of the rupiah against the US dollar was a bit volatile. However, Indonesia is still economically secure. Because the current conditions are not what they used to be, where the need for US dollars is getting smaller.