Bitcoin and other top crypto prices were observed to be experiencing uniform movements on Saturday (1/2/2025). The majority of top cryptos were observed to be in the red zone.
According to data from Coinmarketcap, the crypto with the largest market capitalization, Bitcoin ($BTC ) was corrected. Bitcoin fell 2.85 percent in 24 hours and fell 2.90 percent in a week.
Currently, the price of Bitcoin is at USD 102,029.96 per coin or equivalent to IDR 1.66 billion (assuming an exchange rate of IDR 16,300 per US dollar).
Ethereum (ETH) is still strengthening. ETH rose 2.20 percent in the past day, but is still down 0.45 percent for the week. With that, ETH is currently at the level of USD 3,311.66 or IDR 53.98 million per coin.
The next crypto, Binance Coin (BNB) was corrected. In the last 24 hours BNB fell 0.34 percent, and weakened 0.62 percent in a week. This makes BNB priced at USD 676.62 or IDR 11.02 million per coin.
Then Cardano (ADA) was seen in the red zone. ADA fell 1.75 percent in a day, and weakened 2.73 percent in a week. With that, ADA is at the level of USD 0.9463 or IDR 15,419 per coin.
Meanwhile, Solana (SOL) is also sluggish. SOL fell 4.28 percent in a day, and is still down 10.53 percent for the week. Currently, the price of SOL is at USD 229.91 or IDR 3.74 million per coin.
XRP is back in the red zone. XRP is down 2.77 percent in 24 hours and down 2.29 percent in a week. With that, XRP is now priced at USD 3.04 or IDR 49,512 per coin.
Meme coin Dogecoin (DOGE) is weakening. In the last day DOGE fell 1.33 percent, and fell 7.19 percent in a week. This makes DOGE traded at the level of USD 0.3274 or IDR 5,336 per token.
Today's crypto prices of stablecoins Tether (USDT) and USD Coin (USDC) both weakened, down 0.03 percent and 0.01 percent respectively. This makes the price of USDT priced at USD 0.9998 and USD 1.00 for USDC.
As for the overall crypto market capitalization today, it is at the level of USD 3.51 trillion or equivalent to IDR 57,213 trillion, down around 1.77 percent in the last day.
Previously, the crypto market and US stocks had weakened after the US Central Bank, The Fed, maintained interest rates in the range of 4.25%-4.50% this January. Bitcoin had fallen to USD 101,800 after the announcement before finally recovering after the press conference of The Fed chairman, Jerome Powell, eased market concerns.
The same situation also occurred in the US stock market with US stock indexes such as the S&P 500 and Nasdaq showing recovery after Powell's press conference stating that there were no plans to raise interest rates in the near future. The Fed's decision was in line with observers' predictions, especially considering the general inflation conditions which experienced a significant increase based on December CPI data.
However, the Fed's policy statement at the meeting created turmoil in the financial markets, especially in the crypto and US stock markets. Reku analyst Fahmi Almuttaqin said that this phenomenon highlights the still high sensitivity of the crypto market and the US stock market to US macroeconomic sentiment.
"This indicates high investor concerns about potential future risks that may occur if the Fed starts raising interest rates again to suppress inflation. These risks include the potential for large amounts of investment funds to move back to low-risk instruments such as the dollar and US government bonds from the stock and crypto markets," said Fahmi, Friday (1/31/2025).
The launch of DeepSeek AI technology has also become a factor that has further increased these concerns because the future challenges that US stocks that have been believed to have high growth potential, such as stocks in the technology sector, may face may increase.
However, despite that, Fahmi assessed that Bitcoin's price recovery to levels above USD 103,000 during Powell's press conference showed Bitcoin's high resilience and its relevance as an indicator of market confidence.
"The net inflow of spot Bitcoin ETFs on January 30 after the interest rate determination also recorded a fairly good figure of USD 266.6 million, referring to Coinglass data. This indicates that investor confidence is still high regardless of the existing dynamics," he added.
High inflation and the Fed's cautious stance could mean interest rates will remain high for longer. According to Fahmi, this situation could indeed put pressure on risky assets such as stocks and crypto.
However, market players appear to have factored that possibility into their decision-making following the Fed's presentation at last month's FOMC meeting, which stated that it would only cut interest rates around twice this year.
"Thus, Bitcoin's ability to survive at the current price level above USD 100,000 shows the increasingly solid strength of the asset. This may be due to the increasing number of institutional and retail investors who view Bitcoin as a hedging instrument against the decline in the value of fiat currencies and economic uncertainty," Fahmi continued.
Amidst these dynamics, it is important for investors to have a balanced portfolio composition according to their investment preferences and strategies.
"The increasing market uncertainty makes investors need to anticipate more possibilities that could happen in the future. Diversification across sectors by combining several instruments such as stablecoins, US stocks, and Bitcoin and altcoins, is one of the interesting options," said Fahmi.
