Bitcoin Experiences Correction, Touches Lowest Level Since December 2023

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Bitcoin Experiences Correction, Touches Lowest Level Since December 2023





Walknote.eu.org - Bitcoin plunged to its lowest level since mid-December 2023 as speculative demand for Bitcoin spot ETFs diminished. The largest digital asset briefly fell below $40,000 or approximately IDR 624.8 million (assuming an exchange rate of IDR 15,621 per US dollar).

According to Yahoo Finance on Friday, January 19, 2024, Bitcoin managed to recover and was trading around $41,160 or approximately IDR 643.1 million. This level represented a 3% decline in the last 24 hours. Smaller tokens such as Ether, Solana, and Polkadot also experienced declines.

Bitcoin surged by 157% last year amid optimism about the launch of the first Bitcoin Spot ETF traded on a US exchange on January 11, directly holding the token. The digital asset also received a boost from bets on looser monetary policies. Traders are now assessing how much money can be drawn into ETFs and adjusting expectations for interest rate cuts.

Nine new Bitcoin spot ETFs were launched last week, including those from BlackRock Inc. and Fidelity Investments. The Grayscale Bitcoin Trust, valued at $25 billion or approximately IDR 390.6 trillion, transitioned from a closed structure to an ETF.

BlackRock's iShares Bitcoin Trust has attracted over $1 billion or approximately IDR 15.6 trillion in investor inflows. The equivalent figure for Fidelity Wise Origin Bitcoin Fund is around $880 million or approximately IDR 13.7 trillion.

The Grayscale Bitcoin Trust, created in 2013, has experienced outflows of around $1.6 billion or approximately IDR 25 trillion since trading as an ETF began.

Disclaimer: Every investment decision is in the hands of the reader. Study and analyze before buying and selling crypto. Liputan6.com is not responsible for profits and losses arising from investment decisions.


Crypto Prices on January 19, 2024

As reported earlier, the prices of Bitcoin and other top cryptocurrencies experienced varied movements on Friday, January 19, 2024. Most of the top cryptocurrencies were observed to be in the red zone.

Based on data from Coinmarketcap, Bitcoin (BTC), the cryptocurrency with the largest market capitalization, experienced a correction. Bitcoin fell by 2.99% in the last 24 hours and 10.77% over the week.

Currently, the price of Bitcoin is at $41,286 or approximately IDR 644.6 million (assuming an exchange rate of IDR 15,614 per US dollar).

Ethereum (ETH) also underwent a correction. ETH slipped by 2.04% in the last 24 hours and 5.15% over the week. As a result, ETH is currently priced at IDR 38.4 million per coin.

Binance Coin (BNB), on the other hand, continued to strengthen. In the last 24 hours, BNB rose by 0.96%, and over the week, it increased by 1.46%. This makes BNB priced at IDR 4.86 million per coin.

Meanwhile, Cardano (ADA) returned to the red zone. ADA declined by 4.51% in the last 24 hours and 12.94% over the week. Thus, ADA is currently at the level of IDR 7,839 per coin.

Solana (SOL) experienced another downturn. SOL fell by 6.50% in a day and 5.08% over the week. Currently, the price of SOL is at IDR 1.47 million per coin.

XRP was again seen in the red zone. XRP dropped by 3.11% in the last 24 hours and 8.29% over the week. Consequently, XRP is now priced at IDR 8,608 per coin.

The meme coin Dogecoin (DOGE) underwent a correction as well. In the last day, DOGE fell by 2.69%, and over the week, it declined by 7.31%. This puts DOGE at the trading level of IDR 1,217 per token.

As for stablecoins, Tether (USDT) and USD Coin (USDC) both strengthened by 0.01%. This keeps their prices steady at $1.00.

Binance USD (BUSD) also strengthened by 0.01% in the last 24 hours, maintaining its price at $1.00.

The overall market capitalization of cryptocurrencies today is at $1.63 trillion or approximately IDR 25.451 trillion.

IMF Director Warns Cryptocurrency is Not Currency

As previously reported, the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has once again cautioned that cryptocurrencies are not money but merely investment instruments. Georgieva stated that everyone should be able to distinguish between money and assets.

"Our view is that we need to distinguish between money and assets. When we talk about crypto, we are actually talking about an asset class. This can be reserved and in this case, more secure and less risky, or it can also not be,” said Georgieva, as quoted from Yahoo Finance on Tuesday, January 16, 2024.

Georgieva added that crypto is a risky investment asset and not a currency. Her comments emerged just a few hours before the SEC paved the way for the debut of new Bitcoin spot ETFs supported by bitcoin last week.

Regulators have given a clear signal to financial institutions such as Cathie Wood's Ark and BlackRock (BLK) to launch these new ETFs. A total of 11 Bitcoin spot ETFs have been approved.

Despite the recent excitement about Bitcoin, Georgieva from the IMF does not believe that the day is close when crypto will compete with the dollar in terms of finance. Georgieva stated that the dollar is currently the dominant currency due to the size of the US economy and, most importantly, the depth of the capital market in the US.

"So I, for example, am not in a hurry to change my dollar into another currency. That doesn't mean that you shouldn't diversify,” concluded Georgieva. (wp)


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