Bitcoin Drops Slightly, Investors Believe The Future Of Crypto Is Bright

Cryptocurrencies are seen as having a bright future. (Photo; Doc. Pexels)

JAKARTA The crypto market has fluctuated in recent days, with Bitcoin (BTC) and altcoins experiencing price declines. However, investors seem to remain optimistic and anticipate rapid market recovery.

According to crypto analytics platform Santiment, although the price of BTC fell to the level of 66,400 US dollars (around Rp974 million) and altcoins experienced a decline in market capitalization, investors still showed confidence in the prospect of rapid recovery.

Santiment notes that bullish terms like "buy," and "bullish" dominate social media discussions, with frequencies doubling over bearish hashtags like "sales" and "bearish."

"Historically, the best buying opportunities at a time of descent occur when investor consensus shows a little fear of further decline. This usually results in small wallets releasing their assets to be accumulated by a larger crypto holding entity at whale and shark levels," said Santiment.

The Bitcoin Fear & Greed Index of the Alternative platform is currently at level 70, showing the dominant sentiment of greed among investors. This figure is slightly down from the previous day, showing a slight decline in investor enthusiasm.

Bitcoin Price Has Slumped

Data from CoinGecko shows BTC has fallen below $66,000, down nearly 5% in the past week. Facing resistance at $67,000, a breakout is required to reach the next bottleneck at 69,500 US dollars (approximately IDR 1.024 million).

Despite price corrections, crypto analysts and experts remain optimistic about the long-term rise in BTC. CIO Bitwise Matt Hougan predicts an influx of around $1 trillion to BTC via ETF from institutional investors in the coming years. This prediction, if realized, could pave the way for the "proliferate market bull."

"The launch of the bitcoin spot ETF in January opened up a crypto market for investment professionals on a large scale for the first time. And although there is a lot of power that will form the price of Bitcoin in the coming days and months, there is one fact I'm constantly thinking about. These investors control tens of trillions of dollars globally, the best estimate is more than 100 trillion US dollars and they have just started switching to crypto. This is a process that will take years, not months," Hougan said. "The 1% allocation will overall mean 1 trillion US dollars inflow into this space."

Crypto analyst Micha total van de Poppe said that the hype and excitement surrounding the upcoming Haling Bitcoin may begin to subside, resulting in potential price corrections. However, he still argues that the current BTC price movement is in line with historical trends observed before the halling event.

Even though the crypto market is undergoing a correction, investor optimism remains high. This is supported by on-chain data and positive predictions from experts. Institutional investors starting to switch to crypto are also a driving factor in the potential for market growth in the future.