Bitcoin Price Drops Continues Is It Still Reasonable?

Posted on – Bitcoin prices have been dropping for some time. The cause is the big shock that happened in the market cryptocurrency. Indodax CEO Oscar Darmawan assessed that the decline in Bitcoin prices, which is currently at the level of around Rp. 300 million, is still within reasonable limits, when viewed from technical analysis and is a four-year cycle that has happened before.

“After Bitcoin experienced an all-time high in 2013, 2017 and 2021, there will be a significant price decline in the following year followed by a decline in other cryptocurrencies. We can see how the decline occurred in 2014, 2018 and now in the year,” said Oscar in an official statement.

According to him, the four-year cycle is often used by people to buy and collect crypto assets. Because when the price of Bitcoin falls, the prices of other crypto assets usually follow.

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“Usually the price of the majority of cryptocurrencies will follow Bitcoin as the crypto asset that has the largest market cap. The current bearish moment is precisely the moment that long-term traders often take advantage of to build a crypto portfolio by buying the crypto they want at a low price,” said Oscar.

Meanwhile, Forbes noted that the current situation began in May related to the worrying consumer price index (CPI) report. This delivered another inflation shock to global markets.

The increased volatility has also led crypto lending company Celsius to halt customer withdrawals. This also raises concerns that contagion is sweeping the market, quoted on Monday (20/6/2022).

Whereas Celsius has quite a lot of customers up to 1.7 million. The company’s advertisements are also quite promising, namely being able to earn an annual percentage yield of up to 18% by depositing crypto holdings on its platform.

Companies take crypto deposits and lend them to investors and other financial institutions. Users get a share of the income that Celsius generates from crypto borrowers.

But some time ago, Celsius announced it was stopping crypto withdrawals. The company reasoned that the decision was due to extreme market conditions.

“Due to extreme market conditions, we are announcing today that Celsius is discontinuing all withdrawals, swaps and transfers between accounts. We are taking this action to put Celsius in a better position to honor its withdrawal obligations,” Celsius said.

Celsius is considered like a conventional bank account. Even using terms that look like accounts work similarly to bank accounts. However, the company is careful enough to disclose operations not like that. “Your Celsius account is not a bank account, time deposit, savings, current account, or other type of asset account and should not be characterized as a banking product or service,” Celsius said in its terms of use.

At the end of 2021, Bitcoin shot up almost 70%. This however represents something of a drop for Bitcoin after gaining more than 300% in lockdown-hit 2020. In 2022, investors have a greater interest in value-based investments, says East Paces Group founder Alex Reffet.



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