rev, CNBC Indonesia
Market
Saturday, 09/30/2023 09:19 IWST
Jakarta, CNBC Indonesia – The crypto market simultaneously strengthened within 24 hours, after market concerns emerged that interest rates would remain at high positions for a long time.
Referring from CoinMarketCap on Saturday (30/9/2023) at 06.07 WIB, the majority of the crypto market strengthened. Bitcoin edged down 0.46% to US$26,880.44 and rose 1.17% weekly.
Ethereum rose 0.92% in the last 24 hours and in seven days jumped 4.48%. XRP also strengthened by 2.18% on a daily basis and on a weekly basis rose by 1.03%.
Meanwhile Solana appreciated 2.09% in the last 24 hours and on a weekly basis is in the positive zone of 4.11%.
The CoinDesk Market Index (CMI), which is an index to measure the market capitalization-weighted performance of the digital asset market, rose 0.09% to 1,134.60. Open interest depreciated 1.76% to US$24.59 billion.
Meanwhile, reported from Alternative.methe bitcoin fear & greed index was recorded at position 48, which is in the neutral category or slightly higher than yesterday (29/9/2023) which was at number 46 in the fear category too.
Meanwhile, the fear & greed index which was reported from coinmarketcap.com shows the number 42 which shows that the market is in a neutral condition with the current crypto market conditions.
Reporting from cointelegraph.comthe United States (US) economy has been facing turbulent times recently, with the US Personal Consumption Expenditures (PCE) inflation index increasing significantly by 3.5% over the past 12 months.
This proves that the efforts made by the US central bank (The Fed) to curb inflation have not reached the target level of 2%. As a result, the Fed is acting hawkish and has the potential to increase interest rates by 25 bps for the remainder of this year.
When interest rates rise, the price of existing bonds falls, a phenomenon known as interest rate risk or duration. This risk is not limited to certain groups, but this risk also impacts countries, banks, companies, individuals and anyone who holds fixed income instruments.
Ultimately, this spike in yields suggests that investors are becoming increasingly hesitant to take risks by holding long-term bonds. Even those issued by the government itself.
Banks, which typically borrow short-term instruments and provide long-term loans, are particularly vulnerable in these conditions. They rely on savings and often hold Treasurys as reserve assets.
When Treasuries lose value, banks may lack the funds necessary to meet withdrawal requests. This forced them to sell Treasurys and other assets, leaving them near bankruptcy and requiring rescue by institutions such as the Federal Deposit Insurance Corporation or big banks.
The collapse of Silicon Valley Bank, First Republic Bank, and Signature Bank was a warning about the instability of the financial system. As a result, risk assets such as crypto get a breath of fresh air and increase crypto prices.
CNBC INDONESIA RESEARCH
Watch the video below:
Video: The Fed Holds Benchmark Interest Rate at 5.25%-5.50%
(rev)
2023-09-30 02:19:19
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