The Crypto Market Is Constantly Depressed, What’s the Cause?

Liputan6.com, Jakarta The crypto market has remained trapped in a narrow range in trading the past week. Even Bitcoin (BTC) always fails to maintain a trading level at USD 27,000 or the equivalent of IDR 402.3 million (assuming an exchange rate of IDR 14,902 per US dollar).

Tokocrypto external trader, Fyqieh Fachrur revealed, one of the biggest causes of the sluggish crypto and Bitcoin market is the negative outlook regarding the United States economy.

“Last weekend, the Chair of the Fed, Jerome Powell, made new comments on policy and inflation prospects,” said Fyqieh in a daily analysis received by Liputan6.com, Monday (22/5/2023).

Fyqieh added that Powell’s language did not give clear signals about risky assets, so investors were warned that a lot of uncertainty would occur. This makes crypto investors unenthusiastic about enlivening the market again.

US Debt Talks

Besides that, the US debt ceiling talks and anti-crypto rhetoric from the US government will test investors’ appetite. Hopes were dashed by US President, Joe Biden and Speaker of the House, Kevin McCarthy, who did not reach an agreement on Sunday, May 21, 2023 and will meet again this Monday.

However, the US President addressed the debt ceiling issue at the G7 which is hurting BTC and the wider crypto market.

“Anti-crypto rhetoric, and the continued threat of a US crisis, is sending crypto markets into the red. Expect news regarding the US debt ceiling to have a bigger impact on market risk sentiment,” said Fyqieh.

The US stock market was also under pressure, this Monday morning the NASDAQ reflected sentiment towards the debt ceiling crisis, down 12.75 points. The downside comes despite further market reaction to Fed Chair Powell’s less hawkish chat from Friday. In addition, the US Dollar Index (DXY) was also observed to weaken.

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