Bitcoin Cs Price Drops, Here's Why!

Bitcoin prices fell in September. (Photo; Doc. MakeUseOf)

JAKARTA - The crypto market was hit by turmoil again in early September with the decline in Bitcoin cs. The total market value has decreased by nearly 20 billion US dollars (around Rp320 trillion) in just the last 24 hours.

Currently, the total crypto market capitalization is shrinking to around US$2.03 trillion (around Rp32,480 trillion). Bitcoin, the world's largest cryptocurrency, also does not escape strong selling pressure. The price of Bitcoin dropped to the level of US$57,270 (around Rp916 million), the figure that was last seen in mid-August.

Bitcoin Down, Stablecoin Laris Manis

History notes that September has often been a challenging month for Bitcoin. This month is often colored by stagnant or declining price movements, with average losses reaching 5-10%. The trend seems to be repeated this year.

In recent weeks, after failing to break through resistance at the level of $65,000, the price of Bitcoin has continued to decline. This decline is in line with capital flows switching from Bitcoin to stablecoin, indicating investor caution in dealing with current crypto market uncertainty. This condition causes stablecoin market capitalization to soar to record highs, approaching 170 billion US dollars (approximately Rp2,720 trillion).

Massive Sales Potential

In addition, the potential for massive sales also overshadows the market. The United States government is known to have more than 203,000 Bitcoins worth around 12.1 billion US dollars (around Rp193.6 trillion).

On the other hand, the Mt exchange. Gox is also preparing to release another 46.000 Bitcoins, which is estimated to be worth more than 2.7 billion US dollars (approximately IDR 43.2 trillion) to its creditors. If these two sources actually release their Bitcoins into the market, more than 14.8 billion US dollars (approximately IDR 236.8 trillion) Bitcoin could overwhelm the market, potentially reducing prices further.

Decreased Transaction Activities

Analysts note a decline in on-chain activity linked to the exchange, suggesting that fewer people are trading Bitcoin and other cryptocurrencies.

In addition, every recent drop in Bitcoin prices has deepened, while recovery efforts are getting weaker. Data from August shows that Bitcoin may be approaching a critical point this September, which could result in further decline in demand.

Bitcoin Cs Can Recover?

Although the challenges faced are quite large, there is still hope for market recovery. Some observers argue that if the United States Federal Reserve decides to lower interest rates by September 18, this could trigger an increase in the price of Bitcoin and other cryptocurrencies.

According to FedWatch Tool, there is a 30 percent chance to cut interest rates by 50 basis points, which could trigger a Bitcoin price rally. However, for now, Bitcoin needs to rise again above its average movement so that recovery can occur.

If successful, the price of Bitcoin could potentially go up again to US$65.000 (around Rp1.04 billion) and even reach US$70,000 (around Rp1.12 billion). However, the main focus right now is maintaining the level of key support. If it fails, the price of Bitcoin could fall deeper, with the next support level at US$54,000 (around Rp864 million).