BITCOIN (BTC) experienced a significant decline after the announcement of the United States interest rate. On Monday, July 29, 2024, the price of bitcoin was around the level of US$70,000. However, on Friday, August 2, 2024, the price of bitcoin fell below the level of US$64,470 and recorded a decline of around 7.95%. This decline has liquidated the bitcoin market worth US$38.83 million as of July 31, 2024.
The decline also affected other altcoins, one of which is ethereum which is now trading at US$3,149.40, down approximately 7.2% in the same period. This correction could be triggered by several factors, including the impact of Mt. Gox while the payment process to creditors is still ongoing. There are also other factors such as the outflow of BTC ETFs on Wednesday, July 31, 2024, and the FOMC results.
As is known, based on the latest decision of the Federal Open Market Committee (FOMC), the interest rate is at 5.5% while giving a signal that the interest rate may fall in September. The policy issued by the FOMC affects the price of crypto assets, both directly and indirectly. This is because crypto assets are believed to move opposite to the US dollar.
Indodax CEO Oscar Darmawan said that the decline in bitcoin prices may be part of a broader market correction. “In the short term, volatility like this can be common, especially after a sharp price increase. However, it is important to see this correction as an opportunity to re-arrange investment strategies,” he said.
“Although the bitcoin price is currently under pressure, the price position still shows long-term bullish potential. Investors should see this as an opportunity to evaluate their position,” Oscar explained. If Bitcoin can maintain the price level above US$70,000 and break through higher resistance, there is potential for significant price increases. The crypto market remains dynamic and investors must be ready to adapt to rapid changes.
Therefore, Oscar invites investors to collect bitcoin as an investment opportunity. However, investors must be prepared for the risk if there is a decline like now. He indicated that now is a good time to add positions in bitcoin, given the history of potential long-term profits. (Ant/Z-2)
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