Bitcoin Price Drops To IDR 1.06 Billion This Week, What Causes It?

Illustration of Bitcoin price reduction (photo: Pexels)

JAKARTA - Bitcoin has decreased to US$65.000 (Rp1.06 billion), due to increased sales of BTC from BTC mining companies and the United States (US) Federal Reserve central bank that maintains high interest rates.

Last week, the Fed announced it would only cut interest rates once in 2024, changing from the previous target of three cuts. The US central bank also retains a stable interest rate at 5.25-5.50 percent at a meeting Wednesday, June 12.

On the other hand, according to a CryptoQuant report, the number of BTCs sent from mining companies showed Bitcoin to the stock exchange had reached its highest figure in the past two months, indicating an increasing sales of BTC.

According to Panji Yudha's Financial Expert Ajaib Crypto, miners' latest decision to relinquish their holdings is related to a decrease in revenue following the halving event.

"With the decline in transaction costs and the high hash rate of the network, mining income has continued to decline over the last few months," Panji said in a statement quoted on Wednesday, June 19.

However, Panji added, historically a sustainable low income and a high hashrate could indicate a potential market low spot. Ultimately, this suggests that the Bitcoin market may be achieving stability or preparing to resume its bullish momentum.

According to Panji, currently BTC is still moving in a cup and handle pattern and if it can rebound, the potential to rise again with the closest target to MA-20 at 68,200 US dollars (Rp1.11 billion).

"Meanwhile, if the breakdown is below US$65,000 (Rp1.06 billion), then the potential will continue to weaken towards the support area at US$64,000 (Rp1.04 billion) and the support will then be at US$60,000 (Rp983.7 million)," said Panji.