Bitcoin and a series of other cryptocurrencies have experienced quite significant strengthening since Tuesday, May 21 2024. The price of Bitcoin touched USD 71,259 or the equivalent of IDR 1.14 billion (assuming an exchange rate of IDR 16,004 per US dollar).
This figure is equivalent to 51% higher year-to-date and close to Bitcoin's All-Time-High (ATH)Â in the previous period of USD 73,000. So what is the cause of the increase in the crypto market and what is the potential for Bitcoin price movements in the future?
Crypto Analyst Reku, Fahmi Almuttaqin said the increase was caused by several factors, including the adoption of institutional investors, developments in US inflation, as well as optimism regarding the approval of an Ethereum spot ETF.
Apart from that, Bitcoin itself is already on a bullish track, where its main rally historically usually starts between 1-6 months after the halving.
"Famous institutions ranging from Morgan Stanley, Millennium Management, to the pension fund management institution of one of the states in America, Wisconsin, have started purchasing Bitcoin through the spot Bitcoin ETF instrument," said Fahmi. Wednesday (22/5/2024).
Fahmi added that news regarding the institutional adoption, which has been going on for the last month or two, began to become known to the public in the last week or two through report documents submitted to the SEC.
Apart from that, last week's US Consumer Price Index (CPI) data which indicated easing inflationary pressures also provided more calm for market players. Efforts to reduce inflation are on the right track.
This data also increases investor optimism regarding the possibility that inflation can fall without putting significant pressure on economic growth. "One of the most dynamic factors that is influencing market movements this time is the shifting outlook regarding the possibility of approval for the Ethereum Spot ETF.
Rally Potential Continues
Fahmi said that in the future, the crypto market has the potential to rally if a number of conditions occur.
