Corrected Bitcoin After Printing ATH Three Days In A Row, Inflation And Political Factors Triggered

Illustration (photo: Pixabay)

JAKARTA - Bitcoin has experienced a correction after setting an all-time high (ATH) for three consecutive days.

On July 11, Bitcoin was perched at the level of 118,500 US dollars (Rp1.931 trillion), July 13 at 119,300 US dollars (Rp1.94 trillion), and 122,800 US dollars or around Rp2.002 trillion on July 14.

However, on Wednesday, July 16, the price of Bitcoin was again corrected to a lower level, which was USD 117,000 or around IDR 1.907 trillion.

Responding to this condition, Reku analyst, Fahmi Almuttaqin, explained that the increase in inflation in the US also affected market conditions amid the profit-taking that occurred.

In addition, political factors such as pressure from Donald Trump on Fed Chairman Jerome Powell to lower interest rates by 1% or even resign, also add to the dynamics in the market.

However, even though Bitcoin is corrected, some altcoins are still recording significant increases. Altcoins such as PENGU, XLM, CRV, and ALGO have even increased by more than 50% in the past week.

This shows the existence of capital rotation from Bitcoin to medium-qualitalized assets. If this trend continues, other altcoins can be encouraged to be stronger, although market optimism still relies heavily on the Fed's potential for lowering interest rates," said Fahmi.

According to Fahmi, currently, many investors are still waiting for the signal of cutting interest rates to re-allocate funds to altcoins.

This could be an advanced phase of the bullish cycle. But investors have to be vigilant because the altcoin rally is usually very volatile and can turn around quickly. Discipline in utilizing momentum and being sensitive to signs of reversal is very important," he explained.

He saw that the new Bitcoin record of more than IDR 2,000 trillion answered doubts over the previous price which was considered too high in the range of IDR 1,891 trillion (equivalent to 116,000 US dollars).

If the US economic easing policy is really implemented, the potential for incoming funds to crypto is still large.