Crypto Ecosystem Missed to USD 30 Billion Since 2012

Bitcoin posted its highest price in over a year on Tuesday, July 4, 2023 on news that BlackRock resubmitted its application for a spot Bitcoin ETF.

Reporting from Decrypt, Wednesday (5/7/2023), the largest coin based on market capitalization is trading at USD 31,250 or the equivalent of IDR 469.1 million (assuming an exchange rate of IDR 15,013 per US dollar), according to CoinGecko data. This represents a gain of 2.4 percent over the last few days and the highest price of Bitcoin since June last year.

Over the past year, Bitcoin has risen 62 percent, weathering multiple crises such as the collapse of cryptocurrency exchange FTX and the historic boom of several regional banks, eventually ending up in the green zone.

Last year’s June was one of Bitcoin’s worst months since 2011, dropping to USD 19,000 or equivalent to Rp. 285.2 million from around USD 30,000 or equivalent to Rp. 450.3 million.

At that time, inflation in the US peaked at a four-decade high of 9.1 percent, and the Federal Reserve raised interest rates by 75 basis points, the biggest increase in 28 years.

Now, experts say BlackRock’s initial move to build America’s first-place Bitcoin ETF is seen as a hallmark of institutional adoption for the crypto. As well as reinforcing Bitcoin’s reputation as a fledgling asset, the spot ETF from BlackRock will make it easier for institutions to gain exposure to the crypto’s oldest coins.

Meanwhile, Ethereum is up 2.9 percent over the past few days at USD 1,969 or equivalent to IDR 29.5 million at the same time. While this is not Ethereum’s highest price in over a year the coin did rise above USD 2,100 or equivalent to Rp. 31.5 million in April. Ethereum has surged more than 85 percent in the last 12 months.

Bitcoin and Ethereum make up more than 65 percent of the total crypto market, and several altcoins have faced pressure following enforcement actions from the Securities and Exchange Commission (SEC).