Advertisement
Langgampos.com - Surabaya - Bitcoin (BTC) has achieved a new all-time high, surging past USD 107,000, equivalent to approximately IDR 1.7 billion. This monumental increase is attributed to large-scale trades by "whales" and the inclusion of MicroStrategy in the Nasdaq 100, further solidifying Bitcoin's position as a key player in the technology sector.
The rally is bolstered by favorable macroeconomic data from the United States, such as a 2.7% inflation rate, which has reinforced a bullish sentiment. Additionally, on-chain analysis indicates a consistent decline in Bitcoin reserves on exchanges, signaling reduced selling pressure and heightened interest in holding the asset.
Another factor fueling optimism is speculation about potential policies under Donald Trump, should he assume office in January 2025. Market watchers believe he might issue an executive order declaring Bitcoin as a national reserve asset. With institutional participation growing and supportive economic conditions, the Bitcoin rally is expected to persist.
Institutional Support Validates Bitcoin
Indodax CEO Oscar Darmawan highlighted how Bitcoin's surge reflects growing market confidence in digital assets, driven in part by institutional players like MicroStrategy.
“The inclusion of MicroStrategy in the Nasdaq 100 provides additional validation of Bitcoin’s role as a globally accepted investment asset,” Oscar stated in a press release on Tuesday, December 17, 2024.
Oscar also attributed Bitcoin's price hike to reduced selling pressure in the market.
“On-chain analysis shows that Bitcoin reserves on exchanges continue to decline. This indicates that many investors are opting to hold onto their assets, which is a key driver of the current price rally,” he explained.
Optimism Tempered with Caution
The Fear and Greed Index currently stands at 80, signaling strong market optimism. However, Oscar cautioned investors about the inherent volatility of cryptocurrency markets.
“While optimism dominates, it is essential to balance it with caution, given the high-risk nature of the crypto market,” he added.
Oscar emphasized the role of U.S. macroeconomic data, particularly controlled inflation and stable monetary policies, in sustaining Bitcoin’s upward trend.
“Controlled inflation and steady monetary policies provide a strong foundation for Bitcoin to attract interest from a wide range of investors, including institutional players,” he noted.
A Call for Risk Awareness and Diversification
Despite the favorable market environment, Oscar advised investors to remain prudent and avoid getting swept up in euphoria.
“Although macroeconomic trends are supportive, investors must exercise caution and assess the risks before making investment decisions,” he warned.
Oscar concluded by stressing the importance of diversification.
“Do not focus solely on Bitcoin. There are many other digital assets with significant potential. Understanding their fundamentals is crucial for making informed investment decisions,” he said.
Positive Outlook with Risk Management
With a combination of strong market conditions and institutional backing, Oscar remains optimistic about the continuation of Bitcoin's bullish trend. Nevertheless, he emphasized the necessity of sound risk management to navigate the inherent complexities of the crypto market.
As Bitcoin continues to capture global attention, industry leaders urge investors to approach the market with both enthusiasm and caution.
(*)
