Pintu Bags First Physical Crypto Asset Trader License in Indonesia

Although Bitcoin selling pressure from investors in the US capital market has eased, the increase in purchases that occurred did not seem to be able to last. “This could be due to the choice of other assets such as stocks and the US dollar, which are relatively more attractive amidst the current situation,” he continued.

If the Fed then lowers its benchmark interest rate in September 2024, he assesses that the potential for increased cash inflows into crypto assets will likely be accompanied by relatively low selling pressure.

“After the German government has completed its Bitcoin sale, the remaining selling pressure for market players to worry about is from Mt Gox and GBTC creditors. Other parties such as the United States government, which also owns a large amount of Bitcoin, are relatively less concerning at this time, as there are no signs that they will make significant sales in the near future,” Fahmi explained.

Thus, if the remaining selling pressure from Mt Gox creditors and GBTC investors can be absorbed by the market before September, then Bitcoin has the opportunity to appreciate due to the potential for increased inflows of funds into crypto assets after interest rates begin to be lowered.

“If Bitcoin appreciates, it can be said that the majority of crypto assets will probably appreciate as well. However, new inflows of funds will usually target assets with large capitalization first. So besides Bitcoin, crypto assets such as Ethereum, Solana, BNB, XRP, or even Dogecoin and Toncoin to Bitcoin Cash, could potentially be targeted,” he explained.

In addition, crypto assets that are market leaders in potential sectors such as Real World Assets (RWA), Artificial Intelligence (AI), Blockchain Infrastructure, Liquid Staking and Restaking, to Stablecoin and Gaming may also receive increased attention. Especially from investors who want wider exposure to crypto assets.

However, Fahmi emphasized that investors need to remember that how many basis points the interest rate will be lowered later will also be a significant variable that can affect the potential magnitude of its impact on the crypto market.

“In addition, the outlook for the next interest rate policy that will be presented at the Fed’s September meeting will also be a factor that will be closely monitored by investors, especially if the inflation development data is still not in line with the Fed’s expectations,” he said.

“Therefore, it is important for investors to always follow the existing dynamics and developments and monitor their portfolios regularly,” said Fahmi.