At present, sentiment within the cryptocurrency investing community is characterized by a cautious optimism. Investors are navigating a complex landscape shaped by hopeful macro signals—such as anticipated Federal Reserve rate cuts and dovish policy pivots—tempered by volatility-driven pullbacks, concerns over concentration risks, and the shifting tides of sentiment across jurisdictions.

In August 2025, Ethereum orchestrated one of its most remarkable rallies in years. On August 24, ETH surged to a new all-time high—reaching approximately USD 4,945.60, surpassing its 2021 peak and pushing its market capitalization near USD 600bn.

The recent rally in the cryptocurrency market has been partly fueled by expectations that the Federal Reserve will soon cut interest rates, in our view. Anticipation of looser monetary policy has lifted risk appetite, encouraging investors to allocate more capital into digital assets. Lower rates reduce the appeal of holding cash and bonds, while simultaneously improving liquidity conditions, thereby supporting speculative markets such as cryptocurrencies. This shift in sentiment has amplified the upward momentum of major tokens, including Ethereum, Bitcoin, and select altcoins. 
In his address at the Jackson Hole Economic Policy Symposium on August 22, 2025, Chair Jerome Powell conveyed a cautiously optimistic tone regarding the possibility of an interest rate cut in the near future. 

Simultaneously, Powell addressed inflationary pressures stemming from rising tariffs, cautioning that while such pressures might be transient, they could also evolve into more persistent issues that the Federal Reserve must vigilantly monitor.

This is expected to help stabilize the rupiah within the IDR 15,500–15,800/USD range in 3Q25, while reinforcing Bank Indonesia’s dovish stance. We anticipate a Fed funds rate cut in September. We forecast loan growth of 8% and a 10-year government bond yield of 5.8% by year-end, reflecting optimism that improved liquidity will support investment, GDP expansion, and financial market stability.
 
We expect bullish performance from Indonesia big cap stocks as we expect more inflow to come. Be cautious on Indonesia big banks as the recent share price decline has made the valuation undemanding.