Price crypto- fall along with the price crude oil world. Ironic, it’s not which is predicted to be a safe haven asset was also infected.
Collect coinmarketcap.com, Tuesday (10/5), the top 10 crypto assets with major market caps, fell by tens of percent overnight. Bitcoin, the most digital currency, has fallen to a price level of US $ 30 thousand.
Likewise, world crude oil prices fell 6.1 percent. Brent crude futures fell 5.7 percent to US$105.94 per barrel, while West Texas Intermedia (WTI) crude fell 6.1 percent to US$103.09 per barrel.
Benchmark gold in international markets fell 0.15 percent to US $ 1,855.9 per troy ounce. The decline in international gold prices was reflected in Antam’s gold price today, which fell by Rp7,000 per gram to Rp970 thousand. Yesterday, Antam’s gold price had fallen by Rp. 2,000 per gram.
Reflecting on this phenomenon, Director of PT TRFX Garuda Futures Ibrahim Ascustombi said that the sentiment of the strengthening of the US dollar dominated, including global economic conditions that were overshadowed by the Russia-Ukraine war.
Moreover, the US central bank (The Fed) has just raised its benchmark interest rate to 50 basis points (bps). The tight monetary policy triggered the strengthening of the US dollar which made commodity prices, including crypto, gold and oil, weaken.
“This is the fear of countries that there will be a major post-war Ukraine crisis, in which all central banks will raise interest rates. At a time when global central banks, started by America, raise interest rates so large, it will affect the dollar index which continues to strengthen,” Ibrahim told CNNIndonesia.comTuesday (10/5).
Ibrahim cited two other factors that contributed to the crisis fears. First, the lockdown in China, which is a shopping center, as well as one of the largest manufacturers, also contributed to a decline in the trade balance.
Second, global inflation is increasing due to the ‘war of sanctions’ between America and its allies against Russia and vice versa the impact of Russia’s invasion of Ukraine.
“This indicates that there is a war in Ukraine, this is very heavy on economic growth. So, the allies are playing,” he said.
Even so, he estimates that gold and oil will return to being safe commodities, aka safe havens. But before that, both commodities, plus crypto, will be colored by profit-taking from the lowest prices.
“At the time of the first world war, the second world war, all prices were destroyed, except for the price of oil and gold as safe havens. Not yet, but later there will be hope that when gold prices touch the level of US $ 1,825 (per troy ounce) , this will jump to the top,” said Ibrahim.
“Then oil is at US$95 (per barrel), later the sultans will play everything there. He will take a buy position at the lowest price, to return to the previous status price,” he continued.
In line with Ibrahim, DCFX Futures Analyst Lukman Leong said that the strengthening of the US dollar and the lockdown in China were the main triggers for falling commodity prices. However, there are several other factors that keep prices down.
“Like crypto because of the release of risky assets, oil because of the global economic outlook, especially the lockdown in China, raising concerns that oil demand will decline. Because it is one of the largest consumer goods in the world,” said Lukman.
Since crypto is seen as a risky asset, he said when risky stocks on the exchange plummet, crypto is also affected.
“So risky assets such as the technology sector, start-ups, even conventional stock companies, and of course risky assets such as cryptocurrencies will definitely be greatly affected. So investors are actually releasing all risky assets,” explained Lukman.
“The US dollar has the upper hand first, then gold will follow maybe later a few months later. So, I see gold temporarily falling back due to the strengthening of the US dollar, but will rise after a while,” he concluded.
(tdh/one)
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