Altcoin Market Slums: Ethereum Drops More Than 10 Percent

Illustration. (Photo: Unsplash)

JAKARTA - The altcoin market, including Ethereum (ETH), has experienced a decline in recent days, where ETH had touched a price of 2.790 US dollars on August 26, 2024, then had dropped to 2.301 US dollars on September 9, 2024.

This decline puts Ethereum at its lowest point against Bitcoin in nearly 3 years. However, there are indications that this decline may be temporary.

The altcoin market is not only influenced by the technological development and sentiment of investors, but also by global liquidity flows. According to a report from Cointelegraph.com, one of the factors affecting the altcoin market was liquidity injection from China which tends to increase at the end of the year and peaked in February.

If global liquidity increases, especially with the Quantitative Easing (QE) policy in China and the United States, we can see a significant increase in the altcoin market. Quantitative Easing is a non-conventional monetary policy carried out by the central bank by increasing the amount of money circulating in the market.

The trick, the central bank buys financial assets from banks or financial institutions, as well as long-term government securities. The goal is that it is easier for people to get loans or loans. This policy is usually carried out when the usual ways in managing the economy are no longer effective.

INDODAX CEO Oscar Darmawan assesses that the current condition cannot be separated from the frequent cycles in the crypto market, which are influenced by various global factors such as monetary policy and the trend of technology adoption.

Oscar also noted that altcoin price fluctuations often follow the seasonal patterns and global liquidity movements, especially from major countries such as the United States and China. Oscar also highlighted the Fed's important role in determining market direction.

"With the Fed planning to lower interest rates starting in September, this could be a catalyst for the altcoin market to recover and grow," he said.

Altcoin has become an integral part of the investment portfolio of traders and investors. The INDODAX platform offers a wide selection of altcoins, including some that have great potential in the future. Ethereum (ETH), one of the largest altcoins in the world, continues to be a favorite among INDODAX users, despite price fluctuations.

Oscar emphasized the importance of diversification in crypto investments.

"At INDODAX, we always encourage users not only to focus on Bitcoin, but also to explore the potential of various altcoins. Thus, they can maximize investment opportunities in the midst of market dynamics that continue to change," said Oscar.

The INDODAX platform continues to strive to provide easy and safe access for users to invest in altcoins. By presenting sustainable educational features and programs, INDODAX ensures users have the information needed to make smarter investment decisions. INDODAX invites all users to take advantage of opportunities in the altcoin market and invest wisely.