Jakarta –
Threat cryptocurrency crisis becoming real. This can be seen from the collapse of one of the largest cryptocurrency exchanges in the world, FTX.
The value of cryptocurrencies has also decreased. Bitcoin, for example, the largest crypto asset by value is freefall.
As cited by Coin Market Cap data, on Tuesday (15/11/2022), the price of bitcoin fell very deeply. Bitcoin broke a record on November 10, 2021. At that time, the value of bitcoin reached US$68,789.63 or about IDR1.06 billion (assuming an exchange rate of IDR15,500).
With that price, it can be said that having 1 bitcoin you can buy a Mitsubishi New Pajero Sport Dakar Ultimate 4×4 class car that costs IDR 720 million in online stores. Likewise with the Toyota New Fortuner VRZ 4×4 DSL GR Sport 2.8 which costs IDR 715 million.
In fact, if bitcoin were melted down at that time, there would still be Rp left. 200 million more.
But who would have thought, within a year the value of bitcoin has dropped dramatically. Compared to all-time highs, the decline in bitcoin has reached 75.63%.
Bitcoin is now priced at US$16,720.83 or roughly Rp. 259.16 million assuming the same exchange rate. This way, you can feel the bitcoin price drop.
If in the past it could be used to buy a car of the same class, the New Pajero or New Fortuner now cannot. However, 1 bitcoin can still be used to buy a car with a much lower class.
Though quoted by CNN, the failure of the FTX exchange is expected to be contagious. The value of bitcoin crypto assets is expected to drop again.
JP Morgan analysts expect bitcoin to drop as much as 25% in the coming weeks. This is partly because the impact of the FTX crash has hit cryptocurrencies.
However, there are other reasons why cryptocurrency values are depressed. This is due to the fact that the Central Bank of the United States (USA) or the Federal Reserve have raised the key interest rate. Then, since June, the Central Bank has reduced its balance sheet by removing money from the financial markets to cool the market. This step was taken to fight inflation. This condition means that capital is drying up, and this is not only bad for cryptocurrencies, but for other assets such as stocks as well.
(dna/il)
