Heaptalk, Jakarta — Bitcoin touched US$66,000 again for the first time since April 24, 2024, followed by the growth of several other crypto assets. According to CoinMarketCap (05/16), Ethereum jumped 4.62% to US$3,017. Meanwhile, another crypto, Solana, has appreciated by 12.22%, equivalent to US$160. Also, the NEAR Protocol increased by 18.39% to US$7.24.
Responding to this growth, Reku’s Crypto Analyst Fahmi believes that this increase occurred due to the release of data on inflation in the United States, which eased the situation. The Consumer Price Index (CPI) in April reached 3.4% annually, down from the previous 3.5% in March 2024.
“April’s inflation developments were better than expectations, with an increase of around 7.3% from the last 24-hour low of around US$61,600. This growth aligned with current conditions in the US stock market with indices, such as the S&P 500, Nasdaq, and DJIA, with positive results,” added Fahmi.
The return of the inflation trend to a positive direction after March data, which was higher than expected, will be an excellent supporting catalyst for the crypto market next month. Moreover, the trend is when the CPI eased for the first time this year, after experiencing an increase in January (3.1%) and February (3.2%) and rising again to 3.5% last March.
Fahmi further elaborated that developing the existing condition and the crypto adoption bump could also spark a significant market reversal. According to Fahmi, CPI data plays a more dominant role in the current situation, specifically since the March CPI data put considerable pressure on the market in the previous month.
“The current rise in the crypto market also highlights investors’ optimism regarding the possibility of interest rate cuts at the end of Q3 and Q4 this year. However, the dynamics of future economic data is still a determining variable that must be anticipated,” added Fahmi.
The proper moment to hold numerous strategic efforts
Amidst the current situation, Fahmi said crypto investors can take advantage of this moment by implementing several strategies, such as narrative hopping, to discover certain narratives with high demand in the market, take profits, and move to other narratives.
On the other hand, investors can also use a dollar-cost averaging (DCA) strategy to make regular purchases every certain period with a certain nominal amount, providing investors with an attractive average price while waiting for a downward trend in interest rates.
“Investors can also monitor the holding period, profit/loss calendar, and accumulated profits from their overall portfolio to obtain an ideal idea of investment performance and decision-making,” Fahmi concluded.
