Bitcoin Had Slumped Far At A Price Of Rp800 Million, Auto Panic Crypto Investors

Bitcoin had slumped far at a price of Rp800 million, an auto-excitation crypto investor (Photo; Doc. Linkedin)

JAKARTA - The crypto market is again hit by a wave of fears, with investors increasingly alert to the volatile market conditions. Over the weekend, the crypto community experienced an emotional rollercoaster, especially after Bitcoin slumped below the figure of 50,000 US Dollars (around Rp808 million), sparking great concern among market participants.

Quoted from Crypto Potato, according to the latest data from Alternative.me, the Crypto Fear & Greed Index, which measures the dominant emotional sentiment in the market, indicates a figure of 26/100, signaling fear among investors. This figure indicates that the market is in a fear'' (scared) condition, and if the negative trend continues, this indicator could approach the extreme fear (extremal fear) level, which could potentially worsen the market situation further.

This index measures the five main conditions of market emotion: extreme fear, fear, neutral, greed, and extreme greed. This tool is used by market participants to assess the prevailing emotional conditions, so that they can make the right investment decisions.

The recent drop in the price of Bitcoin below 50,000 US Dollars has been a major trigger for concern in the market. Hours earlier, this leading crypto asset had fallen to below 49,500 US Dollars (approximately Rp800 million), which was the first significant drop since mid-February. This decline removed more than 500 billion US Dollars (approximately Rp8 quadrillion) from the crypto market value in recent days.

Although Bitcoin had recovered and returned to the figure of 52,000 US Dollars (approximately IDR 841 million), uncertainty remains hitting the market. Many investors fear that this asset may fall back. In a recent tweet, Arthur Hayes, co-founder of BitMEX, attributed this sudden price drop to the massive sell-off by whale or large amounts of crypto holders.

Another factor that has contributed to this bearish trend, including the weakening of the United States economy, uncertainty surrounding the next move from the US Federal Reserve regarding its fiscal policy, and the frequent outflow from Bitcoin ETF.

This fear is reminiscent of events in mid-July, when the German government sold 50,000 BTC confiscated from the Movies2K film hijacking site. At the time, the price of Bitcoin fell to 54,000 US Dollars (approximately IDR 873 million), the first significant drop since late February.

Crypto markets are always known for their volatility, and with the current conditions, investors face a huge dilemma. Is this the right time to buy in the midst of fear, or will prices continue to decline? This uncertainty makes market participants have to be more careful in making their investment decisions in the future.