Bitcoin Reaches IDR 1.5 Billion: Big Institution Becomes A Rail Driven Ahead Of FOMC

Illustration (photo: Unsplash)

JAKARTA - After a long period of decline, Bitcoin (BTC) is showing a strong recovery signal. The price of BTC has skyrocketed by around 11% in the last three days, and broke through the US$93,000 (Rp1.54 billion) level on Thursday, December 4.

Tokocrypto analyst, Fyqieh Almuttaqin, explained a number of important catalysts that are the main triggers for this Bitcoin increase. One of them is the Vanguard asset management decision, which reopens access for 50 million of its clients to invest in the spot Bitcoin ETF.

Fyqieh explained that Vanguard's move is considered a strong signal that institutional adoption is entering a new and more mature phase.

At the same time, the Bank of America also sparked market optimism by starting to recommend a crypto allocation portion of 1%'4% in its customer portfolio.

Analysts estimate that this policy has the potential to open up hundreds of billions of dollars worth of institutional capital to the digital asset market in the next few years, explained Fyqieh.

He considered that this Bitcoin spike occurred due to a rare combination of macro factors and institutional flows.

The combination between Vanguard's entry, a new recommendation from the Bank of America, and the expectations of cutting the Fed's interest rate create what Bitcoin can call a perfect storm", he added.

However, Fyqieh reminded where even though the price moved strongly, the market had not fully recovered from the heavy pressure in November. Because according to him, the US$93,000-95,000 level was a critical resistance.

"If it fails to be penetrated, Bitcoin is very likely to be corrected back to the area of $88,000, especially ahead of the FOMC which always carries high volatility," he concluded.