
Bitcoin Rebounds Amid Crypto Market Recovery, Boosted by Fed Interest Rate Policy and Halving Anticipation
Jakarta, Indonesia - Following a market correction last week, Bitcoin has rebounded with vigor, buoyed by a combination of factors including the Federal Reserve's interest rate policymaking and anticipation of the upcoming Bitcoin halving event.
Surge in Bitcoin Price and Crypto Market
On Wednesday, March 27, at 08:30 WIB, Bitcoin witnessed a surge of 13.8 percent, reaching a level of US$70,519 (Rp1.11 billion). While it experienced a slight dip on Thursday, March 28, falling to US$69,191 (Rp1.09 billion), it still registered a weekly gain of 2.18 percent.
Analysts' Insights: Fed Policy, Halving Boost
Crypto Analyst Reku Fahmi Almuttaqin attributed the recovery in Bitcoin prices and the broader crypto market to the Fed's interest rate policymaking decisions. Fahmi highlighted that the market correction last week was likely a result of uncertainty surrounding the Fed's plans. However, the Fed's decision to raise interest rates by a modest 0.25 percent was perceived as a positive sign, boosting investor sentiment.
Additionally, the halving event, scheduled for May 2024, is also playing a role in the current price movement. During a halving, the block reward for Bitcoin miners is reduced by half, which limits the supply of new Bitcoins entering circulation. This creates an anticipation of scarcity, which can drive up prices.
Sectoral Growth Prospects: RWA, AI, Ordinal Technology
Fahmi identified several sectors with high growth potential in the current market conditions:
- Real World Assets (RWA): Crypto assets that tokenize physical assets, such as commodities and properties. Institutional adoption of tokenized assets, such as the Bitcoin Spot ETF, has fueled growth in this sector.
- Artificial Intelligence (AI): Crypto projects utilizing AI technology, such as Render (RNDR), Bittensor (TAO), and Match.AI (FET), have experienced significant price increases.
- Ordinal Technology expands the utility of the Bitcoin network, leading to increased network revenue. Projects leveraging ordinal technology are expected to benefit from this expansion.
Conclusion
The recent rebound in Bitcoin prices and the broader crypto market is a testament to the underlying fundamentals driving the industry. With the Fed's interest rate policy seemingly less hawkish than anticipated and the halving event approaching, the outlook for the crypto market remains positive. As investors seek out growth opportunities, sectors such as RWA, AI, and ordinal technology offer promising prospects for potential returns.