The Indonesian blockchain industry is once again in turmoil. Today, a new chapter unfolded in the world of cryptocurrency. At the start of the week, the price of Bitcoin soared, surpassing the remarkable IDR 1 billion milestone.
Today’s Bitcoin price achievement is a historical moment for the industry crypto. This figure even broke Bitcoin’s ATH (all-time high) in November 2021, namely IDR 978 million.This indicates that cryptocurrency is gaining recognition as a viable investment opportunity with significant profit potential, despite its associated high risks.
According to INDODAX CEO, Oscar Darmawan, the increase in Bitcoin prices today also indicates that halving day is getting closer.
The reason why Bitcoin’s price today is 1 billion
One of the factors is the impending Bitcoin Halving. For those who are not familiar, Bitcoin halving is the reduction of the reward earned by miners, who successfully add new blocks to the blockchain, by half. At this time, mining rewards one bitcoin block will be halved every 210,000 blocks until it reaches a maximum limit of 21 million. Halving basically aims to maintain the scarcity of crypto assets such as Bitcoin.
The Bitcoin halving itself is planned to occur in around 42 days. It is possible that this year the price increase could reach double or more than the previous halving. Historically, bitcoin has experienced three halvings; this will be the fourth time bitcoin has been halved.
“I believe that halving days are known for increasing prices. This is caused by a disruption in the supply of Bitcoin, which results in increased demand and makes the price rise. Moreover, currently there is a phenomenon of ‘fear of missing out‘ which is believed to strengthen the price of Bitcoin. “Even though the price of Bitcoin rises, during the halving there will be price adjustments,” he added.
Oscar Darmawan also explained that apart from the halving day which was getting closer, one of the causes of this increase was because the FED lowered interest rates and estimated it to be up to 75 basis points. Due to geopolitical conflicts that disrupt global trade activities, global supply chains are disrupted. This makes the global supply cost and delivery index weaken from 50.1 at the end of 2023, currently to 48.9.
“Therefore, this makes investors flock to invest in Bitcoin. This increase in Bitcoin will usually also be followed by an increase in altcoins, one example Ethereum, as in previous halvings. “This causes the emergence of altcoin seasons,” said Oscar.
Indonesian Crypto Investment Continues to Increase
The number of crypto investors in Indonesia continues to show a positive trend at the beginning of 2024. Based on data from the Commodity Futures Trading Supervisory Agency (Bappebti), the total number of crypto investors reached 18.83 million people as of January 2024.
This number marks an increase of 1.73% compared to December 2023, which was 18.51 million people. When compared to a year ago, the growth of crypto investors was recorded at 11.7% from 16.86 million people in January 2023.
According to Yudhono Rawis, CEO of Tokocrypto, the growth of crypto investors in Indonesia shows that public interest in this digital asset is increasing, along with awareness of its investment potential. “On the Tokocrypto platform, there has been a significant increase in the number of new users, which is in line with the increase in Bitcoin prices. “This reflects the increasing enthusiasm of the public for crypto investment,” he said.
Yudho added that intensive education and literacy carried out by various parties, including Bappebti and crypto asset trading platforms, have also encouraged the growth of crypto investors. “Apart from that, other factors such as developments in blockchain technology and increasingly clear regulations also give people confidence to invest in crypto assets,” said Yudho.
Article entitled Today’s Bitcoin Price Has Reached IDR 1 Billion, Indonesian Crypto Investors Reach 18.83 Million People! written by Bambang Dwi Atmoko first appeared on Gizmology
The Indonesian version of this article can be read in Gizmologi.ID
