Bitcoin Drops Below IDR 1.7 Billion, Reku Reveals Cause And Potential Rebound

Bitcoin illustration (photo: Unsplash)

JAKARTA - The price of Bitcoin has again fallen sharply below US$107,000 (Rp1.77 billion) ahead of this weekend. Responding to this condition, Reku analyst Fahmi Almuttaqin, assessed that this decline was triggered by tensions in the China-US trade war.

In fact, based on data from CoinMarketCap, this afternoon, Friday, October 17, Bitcoin is actually perched below 105.00 US dollars or around Rp. 1.74 billion.

"Other crypto assets such as Ethereum (ETH), XRP, and Solana (SOL) are further corrected, with Solana experiencing the deepest decline, dropping more than 4% in the last 24 hours," Fahmi explained in a statement.

Historically, Fahmi said, Bitcoin's performance is quite correlated with the availability of global liquidity. As interest rates decline without the Fed's balance expansion, the price of Bitcoin tends to be restrained as the dollar flows to the stock market at risk has not flowed, regardless of the overall condition that is still bullish.

"In the midst of this pressure, the Fed could again relax its policies if funding pressure gets tougher. If that step does happen, Bitcoin could potentially rebound to the range of 120,000 - 130,000 US dollars (IDR 1.99 - IDR 2.15 billion) in the remainder of this year, during inflation data and financial system conditions it supports," he said.

In addition, according to Fahmi, optimism for crypto market players is still quite strong with the accumulation trend both in BTC and ETH which are still quite solid in line with the development of narrative DATS (Digital Asset Treasury).

Fahmi suggested that long-term investors could take advantage of the existing weakening momentum to accumulate crypto assets with strong fundamentals or crypto blue chips such as Bitcoin and Ethereum.

"Even now, investors can also optimize Dollar Cost Averaging (DCA) with features that make it easier to invest crypto blue chip in one swipe, through the Packs feature on Reku," he concluded.