Jakarta, CNBC Indonesia – Prices of Bitcoin, Ethereum and large market cap cryptos (big cap) others were traded in the red zone again on Friday (12/17/2021) morning Indonesian time, after last Thursday’s time rebound to the green zone.
The crypto market corrected again because investors tended to respond negatively to the British central bank’s stance that it raised its benchmark interest rate overnight.
Launch data from CoinMarketCap as of 09:20 WIB, only Solana digital coin and two digital coins stablecoin namely Tether and USD Coin which are still trading in the green zone this morning.
Solana shot 1.13% to a price level of US$ 178.88/coin or equivalent to Rp. 2,566,928/coin (assuming today’s exchange rate is Rp. 14,350/US$).
While the rest corrected again this morning. Bitcoin slumped 2.53% to US$ 47,733.55/coin or Rp 684,976.443/coin, Ethereum fell 1.75% to US$ 3,964.96/coin (Rp 56,897,176/coin), Cardano plunged 4. 34% to US$ 1.24/coin (Rp 17,794/koin), and Polkadot fell 4.29% to US$ 25.85/coin (Rp 370,948/coin).
Here’s the movement of the top 10 cryptocurrencies by market capitalization today.
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Crypto from Reli Bitcoin big cap The other only happened briefly after the United States (US) central bank agreed to accelerate the reduction in asset purchases (quantitative easing/QE) or tapering this month.
The decline occurred after the US stock market corrected again, amid plans by central banks in developed countries to combat high inflation.
“Bitcoin then [Big Tech] like being penalized again today as investors reallocated some of their more profitable risky bets,” said Edward Moya, senior American market analyst at OANDA. CoinDesk.
“Crypto markets are seeing a lot of repositioning and that’s leading to some unwanted selling pressure, but the medium and long term outlook remains,” Moya added.
In addition, the British central bank (Bank of England/BoE) which has raised interest rates last night also became a negative sentiment in the crypto market today.
Previously, The BoE has raised its benchmark interest rate from 0.1% to 0.25%. This is also the first increase among developed country central banks since the pandemic era amid a spike in the country’s inflation.
The trigger for the change in monetary policy to become tighter occurred after UK inflation as of November touched a 10-year high of 5.1% or higher than the BoE’s target of 2%, and also higher than October’s 4.2% position.
On the other hand, the economy is expected to remain safe, with employment figures where as many as 257,000 workers were absorbed in the UK economy as of November.
Whereas previously, the market (in the poll Reuters) expects that the benchmark interest rate will be held at 0.1% following the outbreak of the Omicron case.
Even though the BoE raised its benchmark interest rate, the European Central Bank (ECB) announced that it would maintain its benchmark interest rate at 0%.
The ECB is in line with the US central bank (Federal Reserve/The Fed), where they will cut bond purchases and they also remain committed to continuing unprecedented monetary policy support for the Eurozone economy until 2022.
Bond purchases under the 1.85 trillion euros (US$ 2.19 trillion) Pandemic Emergency Purchase Program (PEPP), which expires in March 2022, will be cut in the following quarter when the scheme ends.
However, bond purchases under the Asset Purchase Program (APP), will be scaled up to serve as a bridge to quantitative easing until the end of PEPP, after continuing at a monthly pace of 20 billion euros.
CNBC INDONESIA RESEARCH TEAM
(chd / chd)
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