The Fed’s Interest Rate is Predicted to Rise, Crypto Outflows Touch IDR 1 Trillion

Liputan6.com, Jakarta On May 2, 2023, European cryptocurrency investment firm CoinShares published its latest “Digital Asset Fund Flow Weekly Report”, which declared the digital asset market to be bearish for the second week in a row.

Reporting from Cointelegraph, Wednesday (3/5/2023), this sentiment resulted in an outflow of USD 72 million or the equivalent of IDR 1 trillion (assuming an exchange rate of IDR 14,730 per US dollar). The report notes the bearish sentiment can be attributed to the possibility of further rate hikes by the United States Federal Reserve this week.

According to the report, crypto market funds experienced outflows across all countries and providers, especially in Germany and Canada, where outflows amounted to USD 40 million or equivalent to IDR 588.9 billion and USD 14 million or equivalent to IDR 206.1 respectively billion.

Bitcoin recorded the largest outflow of USD 46 million or equivalent to IDR 677.3 billion, with short-Bitcoins also experiencing an outflow of USD 7.8 million or equivalent to IDR 114.8 million, the highest figure since December 2022.

Despite the recent outflows, short Bitcoin continues to lead the inflows for the year, with net inflows of USD 119 million or equivalent to IDR 1.7 trillion.

Although Bitcoin has experienced significant price fluctuations over the past week, resulting in the liquidation of USD 340 million worth of BTC futures contracts, the price of BTC has increased 72 percent this year, outperforming the S&P 500 index’s 9 percent gain.

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