Indonesian Political, Business & Finance News

US Inflation Remains Stable as Cryptocurrency Markets Await Federal Reserve Policy Direction

| | Source: REPUBLIKA Translated from Indonesian | Finance
US Inflation Remains Stable as Cryptocurrency Markets Await Federal Reserve Policy Direction
Image: REPUBLIKA

US inflation was recorded as stable at 2.4 per cent on an annual basis in February 2026. The data has triggered a cautious wait-and-see sentiment in the risk asset market, including cryptocurrencies, as investors monitor the interest rate policy direction of the US central bank, the Federal Reserve.

Based on Consumer Price Index (CPI) data released by the US Bureau of Labor Statistics, monthly inflation in February rose 0.3 per cent, slightly higher than January’s 0.2 per cent increase. Meanwhile, core inflation, which excludes food and energy components, recorded a monthly increase of 0.2 per cent and an annual increase of 2.5 per cent.

Antony Kusuma, Vice President of INDODAX, stated that stable inflation indicates that price pressures in the US economy remain relatively controlled, though market participants continue to monitor the Federal Reserve’s monetary policy moves.

“February 2026’s inflation figure of 2.4 per cent aligns with market expectations, so investor sentiment tends to be more stable. In such situations, market participants typically focus more closely on the direction of The Fed’s interest rate policy,” said Antony on Saturday (14 April 2026).

Market expectations regarding monetary policy are also reflected in the CME FedWatch Tool projection, which shows an almost 99 per cent probability that the Federal Reserve will maintain interest rates at its March meeting. Meanwhile, the probability of a 25 basis point rate cut in April is estimated at approximately 11 per cent.

These conditions have resulted in moderate movements in the cryptocurrency market. Following the inflation data release, Bitcoin was trading in the region of $69,000 USD with relatively limited movement over the past 24 hours.

Beyond the inflation factor, investors are also monitoring geopolitical dynamics and global energy prices. In recent weeks, oil price volatility has increased amid escalating geopolitical tensions in the Middle East, which could potentially affect inflationary pressures in the coming period.

INDODAX reminds investors to continue applying risk management and conducting research before making investment decisions. Gradual investment strategies such as Dollar Cost Averaging (DCA) are also considered helpful in addressing cryptocurrency market volatility.

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