Jakarta –
The bitcoin crypto asset is experiencing a sharp decline. Bitcoin is down nearly 40% from its all-time high hit on November 9.
Bitcoin is currently touching the level of US $ 41,019 or around Rp. 607.05 million. So, what should investors do?
Zipmex Indonesia Co-Founder Raymond Sutanto said the correction was actually still a normal and healthy thing. According to him, this condition can be used by investors to buy at a low price.
“In these conditions, investors should take advantage of the moment according to their risk profile. For investors who have a high-tolerance risk profile, the moment of BTC correction can be considered as a ‘discount’ to enter the market and buy bitcoin at a lower price or The term is buy the dip. Meanwhile, investors with a small tolerance level can buy cumulatively or use the dollar cost averaging (DCA) method,” he explained in a written statement, Monday (12/6/2021).
He explained, there are several factors that suppress the price of bitcoin. For example, The Securities and Exchange Commission rejected the WisdomTree Bitcoin Trust mutual fund on December 1, 2021.
“This is because the proposal submitted by WisdomTree Bitcoin Trust has not been able to meet the provisions set by the SEC regarding the prevention of manipulative and fraudulent actions,” he said.
Then, bitcoin is considered as a competitor of the world banking system. Then, due to the plan of the Central Bank of the United States (US) to reduce asset purchases or tapering.
“The Federal Reserve (The Fed) will begin to reduce asset purchases or tapering in order to withdraw the large amount of assistance that has been channeled by the US central bank. This is done to normalize monetary policy and raise interest rates in 2022, to be precise in June, September, and December,” he explained.
“The tapering policy made most investors decide to release risky assets such as stocks and crypto assets. Then they decided to switch to the US dollar which is considered to be strengthening,” he added.
(acd / das)
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