Bitcoin Price Weakens, Crypto Investors Urged to Watch Macro Pressures

JAKARTA - Bitcoin is weakening again ahead of the Christmas and New Year holidays (Nataru). Today, CoinMarketCap recorded Bitcoin hovering at the level of US $87,300 (Rp. 1.45 billion).

This weakening was triggered by a shrinking expectation of a Fed rate cut after US GDP data for the third quarter grew strongly at 4.3 percent, well above expectations.

This situation makes the chances of interest rate cuts in the near future even smaller, thereby reducing the attractiveness of risky assets such as crypto, exacerbated by the decline in volume and open interest in the derivatives market towards the end of the year.

Seeing this trend, Tokocrypto analyst, Fyqieh Fachrur, assessed that the volatility of the crypto market has the potential to increase during the Christmas holiday period as trading liquidity decreases.

"These conditions can trigger sharper price movements, both towards short-term recovery and further correction, depending on the development of global macro sentiments," Fyqieh explained in his statement, Wednesday, December 24.

He urged investors to remain disciplined in implementing risk management. Because according to him, in the short term, the crypto market is still vulnerable to macroeconomic pressures and technical signals.

Meanwhile, for the medium to long term, he sees that the prospects for cryptocurrencies remain attractive if global liquidity is loosened again and monetary policy moves more accommodatively.

"With this condition, market participants are now looking at whether the end of this year will be marked by a sustainable Christmas rally or rather a continuation of the consolidation phase before the crypto market finds its direction again," he concluded.