Jakarta - The price of Bitcoin has fallen after reaching a record high and the event of "halving." The value of BTC has decreased by 17% in the last month and 10% in the last week.
The volatility of the Bitcoin market continues, despite the recent halving event. The global cryptocurrency market capitalization has plummeted to around USD 2.2 billion, with the price of Bitcoin falling below USD 57,000 for the first time since the end of February.
Popular altcoins, including Solana (SOL), Dogecoin (DOGE), and Shiba Inu (SHIB), have performed even worse, experiencing two-digit daily declines.
Tokocrypto trader Fyqieh Fachrur explained that the decrease in Bitcoin's price is caused by many investors entering a risk-off mode ahead of The Fed's interest rate decision.
The crypto market sell-off is still ongoing, despite The Fed maintaining interest rates within the target range of 5.25-5.50%. Although in line with market expectations, The Fed's decision should have boosted demand for BTC and the broader crypto market.
"The statement by The Fed's Chairman, Jerome Powell, is also friendly towards the crypto market, although it did not meet expectations of a rate cut. The comment was not hawkish as feared by the market. The Fed will maintain stable interest rates in May and June, with a possibility of the first rate cut at the end of this year," Fyqieh said on Sunday (5/5/2024).
According to him, the decline in Bitcoin's price is also caused by the ongoing outflow of Bitcoin ETF. Investor risk aversion sentiment is evident in the BTC ETF fund, where investors have withdrawn their funds over several days.
On May 1, this ETF had a cumulative total outflow of USD 11,942 million, down around 10% from its local peak of USD 12,925 million last week.
Source: https://www.liputan6.com/.
