rev, CNBC Indonesia
Market
Monday, 11/09/2023 12:15 WIB
Photo: Infographics/Beware of Crypto Asset Trading Risks/Arie Pratama
Jakarta, CNBC Indonesia – The crypto market experienced a decline in the last 24 hours which is thought to be due to the potential for inflation in the United States (US) to increase.
Referring to CoinMarketCap on Monday (11/9/2023) at 06.21 WIB, the crypto market fell collectively. Bitcoin edged down 0.26% to US$25,829.78 and edged up 0.51% on a weekly basis.
Ethereum depreciated 1.05% in the last 24 hours and in seven days fell 1.10%.
Dogecoin fell 3.1% daily and fell 2.71% in the week.
Likewise, Solana fell 5.71% in the last 24 hours and weekly fell 6.09%.
The CoinDesk Market Index (CMI), which is an index for measuring the market capitalization-weighted performance of the digital asset market, fell 0.56% to 1,094.85. Open interest appreciated 1.32% at US$22.20 billion.
The Fear & Greed Index reported by coinmarketcap.com shows the number 35, which means the market is still afraid/pessimistic so a correction occurs in the crypto market.
This week the US will release its inflation data for the period August 2023. According to Trading Economic data, general inflation is expected to jump to 3.6% on an annual basis (year-on-year/yoy) from the previous month’s 3.2% yoy.
If inflation increases even if it is above market expectations, the risk asset financial market, one of which is crypto, will be abandoned by investors.
The difficulty of controlling US inflation was further exacerbated because the ISM Services PMI, which measures non-manufacturing business activity, jumped to 54.5 in August. This figure is higher than 52.7 in July and above market expectations of 52.5.
ISM Services Prices also rose to 58.9 in August from 56.8 in July. This means that costs in August increased quite significantly. The strengthening ISM Services indicates that the US economy is still strong so that inflation could be difficult to suppress in the future. This condition makes market players expect that the US central bank, The Federal Reserve (The Fed), will maintain its hawkish stance.
For information, the Fed’s US inflation target is around 2%. If US inflation is still far above the target, then market players’ hopes of seeing interest rate easing are increasingly distant.
CNBC INDONESIA RESEARCH
research@cnbcindonesia.com
Watch the video below:
Video: The Fed’s benchmark interest rate could increase to 6%, will BI follow suit?
(rev/rev)
2023-09-11 05:15:06
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