The price of Bitcoin went down for a while before climbing up. Photo: ist
JAKARTA – The crypto market has experienced another decline after last week’s Bitcoin price moved below USD26,000. In fact, last Thursday (17/8) the price of Bitcoin touched USD 25,200, its lowest price point since mid-June 2023.
In just one week, the price of BTC has decreased by 11.20%. This was the worst weekly decline since November 2022 following the FTX fiasco.
Panji Yudha, Ajaib Kripto Financial Expert, said that the decline in Bitcoin prices has occurred since the minutes of the July policy meeting by The Federal Reserve were released on Thursday last week (17/8).
In the minutes, the Fed gave a signal that there is a potential increase in inflation which will also lead to the potential for further interest rate hikes.
“Finally, the Fed raised interest rates at the FOMC at the end of last July, by raising its benchmark interest rate by 25 basis points to a level of 5.25% -5.5%. The Fed has raised interest rates 11 times since the Russia-Ukraine war began in early 2022. The Fed’s interest rates are at the same time the United States (US)’s highest interest rates on record since the last two decades,” he said.
Panji said that as a reaction to the Fed’s hawkish attitude, the crypto market experienced a decline.
“On the other hand, yields on the United States Treasury with a tenor of 10 years reached their highest closing since 2008, thus providing positive sentiment for the movement of the US dollar,” he said.
In addition, the crypto market has also come under pressure after a report from The Walls Street Journal on (17/8) that SpaceX may have released some or all of its Bitcoin holdings worth USD373 million.
However, there has been no official statement from Space X or Elon Musk regarding these rumors.
“Regardless of whether it is true or not, this news has caused market concern which led to a sell-off last week,” said Panji. On Tuesday (22/8) morning at 09.00 WIB, BTC was moving at a price of USD 26,095, depreciating 0.22% in the last 24 hours.