Crypto prices with large market capitalization (big cap) were observed to be bright and enthusiastic in trading Thursday (13/1/2022) morning Indonesian time, indicating that a recovery trend is starting to form after being corrected for several days.
Launching data from CoinMarketCap as of 09:10 WIB, almost all big cap cryptocurrencies have managed to recover from the correction zone, except for two stablecoins, namely Tether and USD Coin.
Bitcoin shot 2.08% to a price level of US$ 43,592.72/coin or equivalent to Rp. 623,375,896/koin (assuming today’s exchange rate is Rp. 14,300/US$), Ethereum jumped 3.19% to a level of US$ 3,339.95 /coin or Rp 47,761,285/coin.
Next, Solana jumped 6.48% to US$ 149.56/coin (Rp 2,138,708/coin), Cardano rocketed 10.58% to US$ 1.33/coin (Rp 19,019/coin), and Terra flew 8, 95% to US$ 79.82/coin (Rp 1,141,426/coin).
Bitcoin is starting to creep up, where today the crypto with a market capitalization of US$ 826 billion is now trading at around US$ 43,000.
The re-positive of the crypto market today occurred after the release of inflation data in the United States (US) from the consumer side (Consumer Price Index / CPI) for the December 2021 period, where the CPI of Uncle Sam’s Country grew 7% year-on-year (year-on-year). /yoy) and is the highest level since 1982.
Although inflation is at its highest level in the last 4 decades, market participants have anticipated this increase.
Economists surveyed by Dow Jones had predicted that the US CPI in December 2021 would rise 7% according to the current actual figure.
The day before, the chairman of the US central bank (Federal Reserve / The Fed), Jerome Powell was present to give testimony and convey the direction of US monetary policy in front of the Banking Senate.
On that occasion, Powell emphasized that the monetary authority would take tightening steps in the form of terminating the bond buying program (tapering) and raising the benchmark interest rate.
Again, Powell’s speech which indicated the direction of the Fed’s policy was also anticipated by market participants so that there were no surprises that made the market depressed.
Bitcoin is seen by most investors in crypto as a hedge against inflation. But there are also some that Bitcoin still cannot be considered as a hedge against inflation.
“The market reaction to the latest inflation data may be a little confusing, but this time around, investors seem much more relaxed about the Fed’s potential hawkish stance.” Mati Greenspan, founder of cryptocurrency and foreign exchange analysis firm Quantum Economics, was quoted as saying by CoinDesk.
On the other hand, some analysts maintain their long-term bullish view on Bitcoin. Although some analysts and investors tend to be optimistic, volatility will still occur in the next few days.
“Crypto markets are expected to remain volatile in the months ahead, although investors are optimistic as they navigate a new era of inflation,” said Lennard Neo, head of research at Stack Funds.