Bitcoin Price Drops More Than Three Percent, What Causes It?

JAKARTA - Based on CoinMarketCap, Bitcoin experienced a price decline of 3.62 percent in the past week, touching the level of 64,588 US dollars (Rp1.62 billion) this afternoon.

According to Crypto Analyst Reku, Fahmi Almuttaqin, the decline in Bitcoin prices was caused by several factors, including the change in the outlook for US interest rates which further strengthened the value of USD.

"The Fed's stance remains consistent so that the economy can achieve its inflation target at 2 percent makes the current high interest rate situation potentially occurring for the next few months," Fahmi said in a statement.

With these conditions, Fahmi sees that investors tend to choose instruments that are relatively safer and produce quite high returns, compared to crypto assets.

Nevertheless, Fahmi continued, the increasing number of liquidity in the US indicates a significant potential flow of funds to the crypto market if the dovish situation or the trend of lowering interest rates begins.

The increasing availability of liquidity will potentially have an impact on the crypto market as interest rate situations begin to turn around, he explained further.

On the other hand, in the midst of weakening Bitcoin, a number of other crypto assets or called Altcoin have actually increased.

Launching CoinMarketCap, XRP greened 2 percent at the level of US$0.480 (Rp7,899) in 24 hours. In addition, Brett (Based) meme coins are 4 percent green, and Lido DAO (LDO) has also increased by 3.36 percent.