Revealed, the cause of Bitcoin prices reaching record highs

Liputan6.com, Jakarta The price of Bitcoin (BTC) surprisingly managed to reach USD 57,000 or the equivalent of IDR 892.3 million (assuming an exchange rate of IDR 15,628 per US dollar), this is the highest price since 2021.

Tokocrypto trader, Fyqeh Fachrur explained that there were several catalysts that triggered an increase in Bitcoin prices. The strong indication of this increase was caused by increased demand, as well as a surge in Bitcoin (BTC) ETF transactions which reached USD 2.4 billion or the equivalent of IDR 37.5 trillion.

“With high investor interest, asset management such as Blackrock's Ishares and others need additional Bitcoin,” said Fyqieh when contacted Liputan6.comWednesday (28/2/2024).

Fyqieh added that another sentiment was the news that Microstrategy's additional Bitcoin purchase of 3,000 BTC also had the potential to increase the price. With this latest acquisition, MicroStrategy's total Bitcoin holdings now stand at 193,000 Bitcoins, acquired at an average price of USD 31,544 or the equivalent of IDR 493.7 million, for a total of around USD 6.09 billion or the equivalent of IDR 95.3 trillion.

Reserve Assets

Apart from that, according to Fyqieg, the number of financial institutions and large companies that have begun to adopt Bitcoin as a reserve asset or as a payment method has also increased trust and interest in Bitcoin.

“This provides additional impetus for Bitcoin price increases. “From a political perspective, there are concerns about a US government shutdown,” explained Fyqieh.

Fyqieh said, as the deadline for a potential US government shutdown approaches, possibly a partial shutdown on March 1 2024 and a full shutdown on March 8, the market is paying close attention to developments.

Additionally, US President Joe Biden's announcement of a meeting with Congressional leaders on February 27 to discuss the situation and its implications for Ukraine adds a layer of geopolitical significance to the discussions, influencing investor sentiment and market dynamics.