Bitcoin Experiences a Sharp Decline, Here Are Tips for Being Safe and Calculating Risk

Bittime - The price of Bitcoin (BTC) experienced a sharp decline on Wednesday (6/3/2024) after reaching a new record high of $69,000 on Sunday (4/3/2024) .

This decline caused a reset in funding rates across the crypto market. According to data from Coindesk , Bitcoin briefly fell as low as $45,000 on Wednesday, representing a decline of more than 30% from its high. This decline occurred after several factors, including:

• Interest rate increase by the US central bank (The Fed): The Fed announced an interest rate increase of 0.25% on Wednesday, which was the first increase since 2018. 

This may cause investors to move into safe-haven assets such as gold and the US dollar, and out of the risky crypto market.

• Inflation concerns: Global inflation continues to rise, and this may cause investors to worry about the purchasing power of Bitcoin and other crypto assets.
• Profit-taking: After significant price increases in recent months, some investors may choose to sell their Bitcoin to take profits.

Although Bitcoin experienced a sharp decline, some analysts believe that this may only be a temporary correction. The crypto market is still in a long-term bullish trend , and Bitcoin is predicted to reach higher prices in the future.

Funding Level Reset

Bitcoin's decline caused a reset in funding rates across the crypto market. The funding rate is the fee paid by traders who use leverage to open long or short positions. 

When the price of Bitcoin falls, traders who open long positions have to pay more fees to traders who open short positions.

This funding rate reset can help to reduce leverage in the market and prevent overheating. This can make the crypto market more stable and resistant to large price fluctuations.

Check Today's Crypto Market:

Impact in Indonesia

The IDR price itself according to the Bittime trade page is IDR  1,044,868,754 with a 1.43 percent decrease.

Some analysts believe that the crypto market in Indonesia still has great potential. Indonesia has a large young population and many people are interested in new technology. This can encourage the growth of the crypto market in Indonesia in the long term.

Also Read How to Buy Crypto:

Bitcoin Price Analysis and Prediction

Analysis

There are several factors that can influence the future price of Bitcoin, including:

• Monetary policy: The monetary policy of the Fed and other central banks will play an important role in determining the direction of the Bitcoin price. If the Fed continues to raise interest rates, this could cause investors to exit the crypto market and move into safe-haven assets.
• Institutional adoption: Adoption of Bitcoin by financial institutions and large corporations can help to increase the stability and credibility of Bitcoin, and encourage more investors to enter the market.
• Regulation: Government regulation of Bitcoin is still unclear. If the government implements strict regulations, this could hinder the growth of the crypto market.
• Technology: Developments in blockchain and cryptocurrency technology can help to improve the scalability and security of Bitcoin, and make it more attractive to investors.

Prediction

The future price of Bitcoin is difficult to predict with certainty. However, some analysts believe that Bitcoin has the potential to reach much higher prices in the future.

• Mike McGlone, senior strategist at Bloomberg Intelligence, predicts that Bitcoin could reach a price of $100,000 (around IDR 1.4 billion) by 2025.
• Fundstrat Global Advisors predicts that Bitcoin could reach a price of $200,000 (around IDR 2.8 billion) in 2026.

However, it is important to remember that these predictions are just speculation. Investors should always do their own research and not invest more than they can afford to lose.

Also read: Differences between Bitcoin (BTC) vs Bitcoin Cash (BCH)

Bitcoin Investment Tips

Here are some tips for investing in Bitcoin:

• Do your research: Learn about Bitcoin and blockchain technology before investing.
• Diversification: Don't put all your eggs in one basket. Diversify your portfolio by investing in various assets, including Bitcoin.
• Manage risk: Use stop-loss orders to limit your losses.
• Invest for the long term: Don't expect to get rich overnight. Bitcoin is a long-term investment.
• Store your Bitcoins safely: Use a secure Bitcoin wallet to store your Bitcoins.

Challenges Facing Bitcoin

Even though Bitcoin has experienced significant growth in recent years, it still faces several challenges, including:

• Volatility: The price of Bitcoin is still very volatile, which can discourage investors from investing.
• Scalability: Bitcoin cannot currently handle many transactions per second. This may hinder the adoption of Bitcoin as a means of payment.
• Energy consumption: Bitcoin mining requires a lot of energy, which can be problematic for the environment.

Check Crypto Prices Today:

Conclusion

Bitcoin's decline on this is a reminder that the crypto market is still very volatile. Investors should be careful and only invest with money they can afford to lose.

However, the crypto market still has great potential in the long term. Investors who want to invest in Bitcoin should do their research first and understand the risks.

How to Buy Bitcoin (BTC) on Bittime

You can buy and sell  Bitcoin (BTC)  in an easy and safe way via  Bittime . Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti. 

Bitcoin (BTC)  is available on Bittime with  the market pair BTC/IDR . To be able to buy  BTC IDR  at Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application. 

Learn  the complete guide on how to buy Bitcoin (BTC) on Bittime . 

Monitor price  chart movements for Bitcoin (BTC ) ,  Ethereum (ETH) , Solana (SOL)  and other cryptos to find out today's crypto market trends in real-time on Bittime.  

Also read:

Want to Profit from Bitcoin? Check Out the Latest Developments on the Fidelity Bitcoin ETF!

Bitcoin (BTC) Price All-Time High! Will it Continue to Rise? This is the analysis

Babylon and Ankr Launch First Bitcoin Minting Protocol

DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.