Crypto Market Bergejolak, Bitcoin Price Drops In The Last 24 Hours

The crypto market has experienced a decline in the last 24 hours. (Photo; Doc. CoinCulture)

JAKARTA - The crypto market has experienced shocks in the last 24 hours with the price of Bitcoin dropping by more than US$1,400 (Rp22,400,000) in just two hours. This decline left Bitcoin daily losses at 2.1%. BTC prices have fallen to around US$65,891 (Rp1,054,256,000).

Several factors have contributed to the movement of this market, including the start of Mt creditors' payments. Gox and the launch of Ether ETF which were unable to raise prices.

Mt. Gox, a crypto exchange that went bankrupt in 2014, has started paying back its creditors with more than 140,000 Bitcoins, worth about $8.5 billion. On July 23, the exchange moved more than 47,500 Bitcoins, which are worth nearly $3.2 billion, to two unknown addresses. According to creditor Telegram group Mt. Gox, some creditors began accepting Bitcoin and Bitcoin Cash payments on the Kraken crypto exchange on July 23.

This repayment process has long been awaited, with creditors waiting more than a decade. During that time, the price of Bitcoin has soared by more than 10,000%. Fear of additional supply of Bitcoin entering the market and potentially being sold has put negative pressure on the market.

In addition, Hong Kong launched Asia's first Bitcoin futures inverse product on July 23. This Bitcoin Future Daily (-1x) Inverse CSOP product offers investors a way to benefit from falling Bitcoin prices. This new tool to bet against Bitcoin could increase selling activity and reduce prices further.

The crypto market also witnessed a massive liquidation of the long position. More than 159 million US dollars (Rp2.544 trillion) long positions were liquidated 24 hours before July 24, compared to 40 million US dollars (Rp640 billion) liquidation of short positions.

Specifically for Bitcoin, more than USD 24 million (IDR 384 billion) long positions were liquidated compared to USD 13.93 million (IDR 222.88 billion) short positions. The forced sale of assets to get out of this long position increases the selling pressure in the bearish market.

On the same day, Ether's ETF began trading, potentially attracting new institutional investors to the crypto market. Although analysts expect adoption to be slower than Bitcoin's ETF, this development introduces new dynamics to the market and could lead to increased volatility for Ether in the short term.

The current market situation is increasingly complicated by political factors. President Biden's decision to step down from presidential candidacy introduces uncertainty to the market. Investors are waiting for more information on Vice President Kamala Harris's stance on cryptocurrencies and its impact on elections.

Despite the current decline, several potential catalysts could support the crypto market in the coming months. Bitcoin halting recently in April and Bitcoin's ETF approval earlier this year had a positive impact.

The upcoming US presidential election in November, with current pro-crypto Trump candidates seeded for the win, could be another positive catalyst for crypto.