Why Does Bitcoin Price Continue To Slum? Here's An Explanation From Tokocrypto Trader

Illustration of Bitcoin (photo: Pexels)

JAKARTA - Bitcoin experienced a dramatic decline, dropping from US$70,000 (Rp1.1 billion) to reaching US$65,000 or around Rp1 billion.

Not only Bitcoin, several other crypto assets also experienced the same thing, such as Ethereum also had dropped to 3,319 US dollars or around Rp52 million.

The decline in Bitcoin (BTC) prices in the past few days seems to have worried many investors. But what caused this sudden decline?

Tokocrypto trader, Fyqieh Fachrur explained that one of the main factors in reducing Bitcoin prices is Bitcoin ETF which recorded a high total outflow in the last few days since early April 2024.

"Activities in the derivative market also play a role in bearish market sentiment, with a decline that seems to be in control," explained Fyqieh.

Furthermore, according to Fyqieh, this decline also reflects the reduced enthusiasm in the crypto market, influenced by the increasing challenges of achieving a looser monetary policy in the United States.

Attention was paid to the Fed meeting scheduled for May 1, with widespread anticipation that US central bank authorities might lower interest rates.

"Therefore, the crypto market falls because the expectations of the Fed's decline in interest rates have decreased. Market participants are starting to look for positions to re-enter the market to see macroeconomic conditions that are not yet stable," he explained.

Despite the drastic decline, Fyqieh asked investors not to lose hope, as BTC seems to follow a historical price trend ahead of halling.

So, if history repeats itself, BTC will likely experience further price drops before gaining momentum and reaching 100,000 US dollars or IDR 1.5 billion

"This downward trend is not unexpected, because BTC is following a historical trend ahead of the upcoming halling," he said.

Bitcoin is slowly moving from the 'Pre-Having Rally' phase to the 'Pre-Having Retrace' phase which tends to occur 28 to 14 days before the halling event. This phase resulted in a price reduction of 38 percent and 20 percent respectively in 2016 and 2020.