The price of the majority of cryptocurrencies with large market capitalization (big cap) reversed correction in trading Tuesday (11/1/2022) morning Indonesian time, because investors were still worried about the potential increase in the United States (US) central bank benchmark interest rate and the latest developments from the corona virus ( Covid-19) globally.
Launching data from CoinMarketCap as of 09:00 WIB, only one digital coin (token) of the stablecoin type, namely USD Coin, strengthened slightly this morning.
While the rest turned corrected today. Bitcoin edged down 0.01% to a price level of US$ 41,764.37/coin or equivalent to Rp. 600,989,284/koin (assuming an exchange rate of Rp. 14,390/US$), Ethereum fell 2.42% to a level of US$ 3,071.39/ coins or Rp 44,197,302/coin, Solana fell 4.3% to US$ 134.71/coin (Rp 1,938,477/coin), and Terra fell 4.5% to US$ 69.2/coin (Rp 995,788 /coin).
The following is the movement of the top 10 cryptocurrencies based on their market capitalization today.
Crypto
Bitcoin traded again around the level of US $ 41,000 this morning because investors were still responding negatively to the potential tightening of the United States (US) central bank’s monetary policy.
The correction in the crypto market that occurred again today is in line with the continued correction of the US stock market, Wall Street on Monday’s trading, although the weakening began to tend to decrease.
The volatility in risk-based global financial markets was caused by the increase in yields on 10-year US Treasury bonds, which are the benchmark, which continued the upward trend and approached the 1.8% level. Even though at the end of last year, the Treasury yield was still at the level of 1.5%.
On the other hand, market participants are also still waiting for the release of US inflation data for December 2021. For the record, the US Consumer Price Index (CPI) in November 2021 rose 6.8% and became the highest increase in the last 4 decades.
Market participants still see that inflation in the US will remain stubborn at the end of 2021. The Trading Economics Consensus estimates that US inflation at the end of the year will reach 7% year-on-year (YoY).
Due to inflation that remains high and seems reluctant to go down, the Fed as the US central bank began to intervene. The injection of liquidity through asset purchases (quantitative easing/QE) is also taped.
Furthermore, the US monetary authority is also preparing to raise the benchmark Federal Funds Rate (FFR) interest rate and reduce the portion of bonds on the balance sheet.
The Fed is expected to start raising its benchmark interest rate in March 2022. If you refer to the dot plot of the Fed, there is room for a 3x increase in FFR this year.
However, Goldman Sachs has the view that the Fed will be more hawkish and could raise interest rates up to 4x.
In addition, the market is also monitoring the latest developments regarding the corona virus (Covid-19) globally, where scientists in several countries have again discovered a new variant of Covid-19 that has characteristics such as Omicron and Delta, so it is referred to as Deltacron. This variant was found in Cyprus and there have been 25 cases.
The price of the majority of cryptocurrencies with large market capitalization (big cap) reversed correction in trading Tuesday (11/1/2022) morning Indonesian time, because investors were still worried about the potential increase in the United States (US) central bank benchmark interest rate and the latest developments from the corona virus ( Covid-19) globally.
Launching data from CoinMarketCap as of 09:00 WIB, only one digital coin (token) of the stablecoin type, namely USD Coin, strengthened slightly this morning.
While the rest turned corrected today. Bitcoin edged down 0.01% to a price level of US$ 41,764.37/coin or equivalent to Rp. 600,989,284/koin (assuming an exchange rate of Rp. 14,390/US$), Ethereum fell 2.42% to a level of US$ 3,071.39/ coins or Rp 44,197,302/coin, Solana fell 4.3% to US$ 134.71/coin (Rp 1,938,477/coin), and Terra fell 4.5% to US$ 69.2/coin (Rp 995,788 /coin).
The following is the movement of the top 10 cryptocurrencies based on their market capitalization today.
Crypto
Bitcoin traded again around the level of US $ 41,000 this morning because investors were still responding negatively to the potential tightening of the United States (US) central bank’s monetary policy.
The correction in the crypto market that occurred again today is in line with the continued correction of the US stock market, Wall Street on Monday’s trading, although the weakening began to tend to decrease.
The volatility in risk-based global financial markets was caused by the increase in yields on 10-year US Treasury bonds, which are the benchmark, which continued the upward trend and approached the 1.8% level. Even though at the end of last year, the Treasury yield was still at the level of 1.5%.
On the other hand, market participants are also still waiting for the release of US inflation data for December 2021. For the record, the US Consumer Price Index (CPI) in November 2021 rose 6.8% and became the highest increase in the last 4 decades.
Market participants still see that inflation in the US will remain stubborn at the end of 2021. The Trading Economics Consensus estimates that US inflation at the end of the year will reach 7% year-on-year (YoY).
Due to inflation that remains high and seems reluctant to go down, the Fed as the US central bank began to intervene. The injection of liquidity through asset purchases (quantitative easing/QE) is also taped.
Furthermore, the US monetary authority is also preparing to raise the benchmark Federal Funds Rate (FFR) interest rate and reduce the portion of bonds on the balance sheet.
The Fed is expected to start raising its benchmark interest rate in March 2022. If you refer to the dot plot of the Fed, there is room for a 3x increase in FFR this year.
However, Goldman Sachs has the view that the Fed will be more hawkish and could raise interest rates up to 4x.
In addition, the market is also monitoring the latest developments regarding the corona virus (Covid-19) globally, where scientists in several countries have again discovered a new variant of Covid-19 that has characteristics such as Omicron and Delta, so it is referred to as Deltacron. This variant was found in Cyprus and there have been 25 cases.