Bitcoin Price Reaches 42,200 US Dollars, What's The Investment Potential?

Bitcoin crypto investment potential (photo: Unsplash)

JAKARTA - The crypto market is turning green again with the price of Bitcoin increasing to 42,200 US dollars or around IDR 657 million. This figure is the highest price for Bitcoin since May 2022.

According to Crypto Analyst Reku Fahmi Almuttaqin, apart from optimism regarding SEC approval for the Bitcoin Exchange-Traded Fund (ETF) application which is scheduled for January 2024, this increase is also driven by a number of catalysts.

Fahmi explained that another factor behind the increase in Bitcoin prices was the low selling pressure from investors as measured based on Bitcoin netflow exchange data. The lower the exchange net flow means the lower the possibility for investors to sell assets.

"This indicates that investors prefer to save or hold the Bitcoin they own rather than sell it, even though the price has risen to the area of ​​39,500 US dollars (IDR 612 million) at that time," added Fahmi.

Apart from that, the next sentiment that boosted Bitcoin prices was investor confidence in the news that the Fed's interest rate increase cycle would end and the interest rate reduction cycle would begin in the first quarter of 2024.

"Investors are starting to prepare for this new cycle of falling interest rates by starting to take positions in crypto assets," he added.

Investment Potential: Investors Buy or Sell?

According to Fahmi, Bitcoin, which has reached up to 42,400 US dollars (IDR 657 million), opens up opportunities for both experienced investors and those who are new to owning Bitcoin.

When investor response tends to be stable, this opens up opportunities for Bitcoin to continue the bullish trend that is forming. Therefore, this situation illustrates the potential for existing investors for the possibility of an even bigger rally.

"Meanwhile, for investors who just want to invest, currently it is still quite early to enter the Bitcoin market," he concluded.