Bitcoin Breaks 107,000 US Dollars, Investors Are Asked To Stay Careful, Don't Be Too Euphoric
JAKARTA - Domestic crypto asset industry players assess Bitcoin's ability to penetrate the price of US$107,000 or Rp1.7 billion this week reflects the stronger global market confidence in digital assets.
"The entry of MicroStrategy to Nasdaq 100 provides additional validation to the role of Bitcoin as an investment asset that is increasingly being received globally," said Indodax CEO Oscar Darmawan as quoted by ANTARA, Wednesday, December 18.
He added that the Bitcoin price spike was also driven by a decrease in selling pressure in the market.
On-chain analysis shows Bitcoin foreign exchange reserves on the stock exchange continue to decline. This indicates that many investors choose to store their assets, which is the main driver in today's price rally.
According to him, the Fear and Greed Index indicator, which is at 80, shows the dominance of optimistic sentiment.
However, this sentiment must be balanced with vigilance, considering the high volatility of the crypto market can pose a risk to investors.
Oscar also highlighted the role of US macroeconomic data, such as inflation, in supporting this positive trend.
Controlled inflation and stable monetary policy provide a foundation for Bitcoin to continue to attract interest from various circles, including institutional investors.
On the other hand, he reminded investors not to be carried away solely by euphoria.
Because, continued Oscar, even though the macroeconomic trend is supportive, investors must remain cautious and take into account existing risks before making investment decisions.
He also emphasized the importance of diversification in investing, not just fixating on Bitcoin because there are many other digital assets that have great potential, and understanding their fundamentals is the key to making the right investment decisions.
With market conditions positive and support from various factors, Oscar is optimistic that this bullish trend will continue, although he still warns of the need for good risk management in the face of crypto market dynamics.