Crypto Market Recovers, These 2 Factors Are Driving It

Liputan6.com, Jakarta – The price of Bitcoin has managed to recover since Wednesday, August 7, 2024, reaching more than USD 56,000 or equivalent to IDR 905 million (assuming an exchange rate of IDR 16,175 per US dollar), after falling to its lowest level in six months.

The decline in Bitcoin crypto valuation was triggered by several factors, including concerns about a looming US economic recession, ongoing tensions in the Middle East, and other macroeconomic variables.

Bitcoin fear and greed index or fear and greed index is currently at a point of extreme fear, a rapid change from the relatively calm neutral status of a week ago.

Market sentiment often changes rapidly in response to political and economic events, and investor concerns about the ongoing bitcoin market crash have not subsided, the index shows. So what’s behind the crypto market’s recovery?

Purchase at Low Price

Many bitcoin investors are using signs of extreme fear as a prime opportunity to buy more bitcoin and even alternatives to leading cryptocurrencies, such as ethereum and Solana.

Some market analysts are optimistic about a strong recovery for bitcoin. Bitget crypto exchange CEO Gracy Chen said Going forward, bitcoin may find support in the $49,500 to $55,000 range.

With the potential for recovery related to upcoming interest rate cuts that could increase liquidity, and positive political news about crypto assets,” Chen said, quoted from Yahoo Finance, Thursday (8/8/2024).

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Chen added that overall, in August, crypto is likely to remain in the same range, with the risk of further declines in market capitalization if geopolitical factors play a role.