Bitcoin Price Weakens Again, Investors Beware Of FOMC

The price of Bitcoin is lower (photo: Unsplash)

JAKARTA - The price of Bitcoin (BTC) has again been under pressure in the last 24 hours, dropping by 1.79% to the level of 97,865 US dollars (Rp1.55 billion) on Tuesday, December 10 at around 08.00 WIB.

This correction comes after a historical spike in the price of Bitcoin that managed to break the psychological level of US$100,000 (Rp159 million) for the first time on Thursday, December 5 last week.

The spike in Bitcoin prices was previously driven by sentiment of optimism towards the pro-crypto policy promised by the President-elect of the United States, Donald Trump.

This optimism was later strengthened by the announcement of Trump's policy of placing individuals friendly to crypto in strategic positions, such as candidates for Chairman of the Securities and Exchange Commission (SEC) and Minister of Finance.

But on the other hand, the Financial Expert of Crypto Ajaib, Panji Yudha said that market concerns about potential distribution by crypto wallets related to Mt. Gox also adds to the pressure.

Last week, a crypto wallet related to Mt. Gox is known to have moved more than 2 billion Bitcoins, sparking speculation about the distribution of coins to creditors in the near future.

Meanwhile, this week, Bitcoin is under market spotlight ahead of the Federal Reserve (FOMC) meeting on December 18, which according to Panji will have an impact on the direction of the movement of crypto assets.

If the Fed takes a hawkish stance, we may see additional pressure on the price of Bitcoin. On the other hand, if inflation is appropriate or lower than expectations, Bitcoin could gain positive sentiment as the market anticipates a monetary policy that is more dovish than the Fed ahead of 2025, "explained Panji.

Nevertheless, Panji said that institutional investors remain optimistic about the prospects for Bitcoin, even in the midst of short-term volatility.

"In the short term, investors need to monitor economic data thoroughly. However, Bitcoin's long-term prospects remain positive, especially with the support of institutional investors and the Trump administration's pro-crypto policies," he concluded.