Bittime - The crypto market has bounced back since Wednesday (20/03/24). This return to optimism was triggered by the dovish tone conveyed by the Chair of the United States Federal Reserve, Jerome Powell, in a press conference following the central bank's decision to maintain its plan to cut interest rates three times this year.
Even though inflation data shows higher than expected figures, the Fed's dovish stance opens up a golden opportunity for investors who want to buy BTC.
Bitcoin price soared sharply through $67,781, registering an increase of more than 10% compared to the previous level. This significant increase was the market's response to Powell's statement indicating a looser monetary policy direction. This is in line with investors' expectations who want the Fed to maintain a dovish stance amid concerns about high inflation.
Ethereum (ETH) is the second largest crypto asset, also managing to recover from a 6% drop earlier in the day. The drop was triggered by news of a secret investigation the Ethereum Foundation is facing from an unnamed government agency, as well as the United States Securities and Exchange Commission's (SEC) consideration of classifying ETH as a security.
Meanwhile, Dogecoin (DOGE) , Litecoin (LTC), and Bitcoin Cash (BCH) led gains among other major crypto assets. This increase may have been fueled by Coinbase's plans announced a few weeks ago to offer futures contracts on these assets. Overall, the CoinDesk 20 Index (CD20) which represents the top 20 crypto assets, saw a gain of nearly 3% in the last 24 hours.
Buy BTC: Its Position in the Crypto Market
The increase in the crypto market is in line with the positive performance of traditional markets. The S&P 500 index jumped nearly 1% to an all-time high, while the tech-heavy Nasdaq-100 rose 1.3%. The US dollar index (DXY), which measures the dollar's strength against major currencies, fell nearly 0.7% from the session's high, signaling increased risk appetite among investors.
Previously, digital asset prices experienced a sharp correction over the past week. Bitcoin even recorded its biggest daily decline since the FTX collapse in November 2022. This correction was caused by market players becoming more risk-averse ahead of the Fed's decision on Wednesday. They worry that higher inflation data last month could prompt the Fed to take a hawkish stance and halt plans to cut interest rates.
However, the Federal Open Market Committee (FOMC) decision on Wednesday concluded that policymakers maintained interest rates and rate cut plans, thereby eliminating the risk of a hawkish scenario weighing on asset prices.
In a press conference, Powell said that "we are making good progress in bringing down inflation," even though inflation data showed higher numbers.
Analysts from market analytics firm Reflexivity Research, Fejau, stated in a post that "The Fed expects slightly higher inflation but not enough to derail their dovish tendencies. The trend is up."
Check Today's Crypto Market:
BTC Rising Wave and Buying Opportunities
The significant increase in Bitcoin prices after the Fed's dovish statement opened up a golden opportunity for investors who want to buy BTC. Loose monetary policy is generally considered positive for risk assets like Bitcoin. When interest rates are low, investors tend to look for alternative assets that offer the potential for higher returns, and Bitcoin is one of them.
Analysts estimate that Bitcoin's long-term prospects remain bright. Institutional adoption of Bitcoin continues to increase, and many large companies are starting to recognize Bitcoin as an asset class in its own right. This could lead to an increase in demand and price of Bitcoin in the future.
Considerations Before Buying BTC
While the current price increase is an attractive opportunity, it is important to remember that investing in Bitcoin carries high risks. The crypto market is known for its high volatility, and the price of Bitcoin can fluctuate significantly in a short period of time. Therefore, before buying BTC, investors need to consider several things:
1. Risk Tolerance: Investors must understand that investing in Bitcoin carries high risks. They should only invest funds they are willing to lose.
2. Diversification: It is important to diversify your investment portfolio by not just focusing on Bitcoin alone. Diversification can help reduce risk and increase portfolio stability.
3. Investment Strategy: Investors must have a clear and long-term investment strategy before buying BTC. This strategy must take into account the investor's financial objectives and risk profile.
4. Safe and Trusted Crypto Asset Trading Platform
To buy BTC, investors must choose a safe and trusted crypto asset trading platform. Platform security is very important because crypto assets are vulnerable to hacking and fraud. Here are some factors to consider when choosing a platform:
- Reputation: Choose a platform that has a good reputation and a solid security record. Look for a platform that has been operating for several years and has positive user reviews.
- Regulation: Choose a platform that is regulated by a credible financial institution. These regulations help ensure that the platforms operate in a fair and transparent manner.
- Security Measures: Choose a platform that implements strict security measures to protect user assets. This includes measures such as two-factor authentication, cold storage for crypto assets, and advanced data encryption.
- Transaction Fees: Compare the transaction fees charged by different platforms. These fees may vary depending on the payment method and transaction amount.
- Features and Services: Choose a platform that offers the features and services you need. Some platforms offer advanced trading features, loyalty programs, and staking services.
5. BTC Buying Method
After choosing the right platform, investors can buy BTC using various payment methods. Some commonly used methods include:
- Bank Transfer: Investors can make bank transfers directly to the crypto asset trading platform's bank account.
- Debit/Credit Card: Some platforms allow buying BTC using a debit/credit card. However, this method usually incurs higher fees.
- Digital Wallets: Investors can use digital wallets connected to crypto asset trading platforms to purchase BTC.
Also Read: Crypto Asset Recommendations for Staking during the 2024 Bear Market
Long Term Buy BTC Investment Strategy
Although the current BTC buying opportunity is attractive, investors need to understand that Bitcoin is a long-term investment. High price fluctuations in the short term can cause significant losses. Therefore, it is recommended to implement a long-term investment strategy that focuses on Bitcoin's growth potential over the next five to ten years.
Some long-term investment strategies that can be considered include:
- Dollar-Cost Averaging (DCA): This strategy involves periodically purchasing Bitcoin (Buy BTC) for a certain amount, without regard to the price of the asset at that time. DCA can help reduce the risks associated with price volatility.
- Periodic Investment: Investors can allocate certain funds on a regular basis for purchasing Bitcoin (Buy BTC). This strategy is similar to DCA, but allows investors to adjust the purchase amount based on market conditions.
- Holding: This strategy involves purchasing Bitcoin (Buy BTC) and holding it for the long term, regardless of price fluctuations. This strategy is suitable for investors who have strong confidence in Bitcoin's future prospects.
BTC/USDT Bitcoin Price Today
Source: Bittime.com
On March 21, 2024, the price of Bitcoin BTC/USDT was at $66,903 per coin, up 8.54% in 24 hours.
Also Read How to Buy Crypto:
Conclusion
The future of Bitcoin and the crypto market as a whole is still full of uncertainty. However, the development of the blockchain technology that underlies these crypto assets continues. Additionally, institutional adoption of Bitcoin shows significant growth potential in the future.
Investors interested in the opportunity to buy BTC need to keep abreast of the latest developments in the crypto world and conduct in-depth research before investing. This article should not be considered financial advice. Always consult a professional financial advisor before making any investment decisions.
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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 of Bitcoin (BTC), Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.
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How Does Tether (USDT) Influence Global Economic Development? Read the explanation
Bernstein: Ethereum and Solana Are the Next Spotlight for Financial Market Domination
DISCLAIMER: This article is informational in nature and is not an offer or solicitation 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.
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