Bitcoin Corrected to US $66,000, INDODAX Says Bitcoin Consolidation Phase as a Normal Cycle

JAKARTA - The price of Bitcoin (BTC) has again come under pressure in the last 24 hours following the release of the latest Federal Open Market Committee (FOMC) meeting minutes which showed differences in the views of US central bank officials. Based on market data on Thursday, February 19, Bitcoin corrected by -1.25 percent to the range of US $ 66,450 (equivalent to Rp. 1.11 billion). The declining expectations of global interest rate easing in the near future directly pushed the crypto market sentiment index to the "Extreme Fear" level.

The latest FOMC minutes showed that policymakers were nearly unanimous in keeping rates at current levels. However, the market reacted negatively to the differences in views regarding the Fed's next move. A number of officials opened the possibility of raising interest rates if inflation remained persistent, while others were willing to cut it if price pressures eased.

This still looming higher for longer attitude puts pressure on global liquidity, reflected by the strengthening of the US Dollar Index (DXY) to 97.7 levels, which has a direct impact on the correction of risky asset instruments. This triggered a sell-off that made the total capitalization of the crypto market shrink. Based on the FedWatch Tool data from the CME Group, market participants are now pessimistic, with a probability of less than 50% for a minimum interest rate cut of 25 basis points before the upcoming June meeting.

Responding to this global dynamics, Vice President of INDODAX, Antony Kusuma, revealed that the current Bitcoin foundation is still in a very well-maintained condition in the midst of a consolidation phase.

"The price correction that occurred after the release of the FOMC is a very reasonable and temporary market reaction. Global investors are currently adjusting the Fed's interest rate reduction timeline. Although Bitcoin is currently below US$67,000, this movement is still within a healthy consolidation range. The US$64,000 area is a strong support point, and historically, this type of consolidation phase is often a good foundation before the market strengthens again," said Antony, in his statement, Friday, February 20.

Furthermore, Antony highlighted the relationship between this global condition and domestic monetary policy. The decision of the Bank of Indonesia (BI) regarding the BI Rate, which is currently at 4.75-5.5 percent, is considered to determine the direction of domestic investor liquidity.

"Bank Indonesia's next steps in maintaining the stability of the rupiah exchange rate will certainly provide certainty for the domestic economy. In the midst of interest rate dynamics and global geopolitical issues that are still dynamic, crypto investors do not need to panic. In fact, macroeconomic conditions like this remind us again of the main function of Bitcoin as a robust long-term hedge asset. We see this as a good momentum for investors to plan their portfolios more maturely," added Antony.

As the largest crypto exchange platform in Indonesia, INDODAX continues to educate members to remain rational amid market volatility and urges investors to always conduct their own research (Do Your Own Research) and maintain strict risk management. In times of macro-pressured markets like now, a gradual investment strategy or Dollar Cost Averaging (DCA) remains the wisest option to mitigate volatility.