Jakarta –
The Financial Services Authority (OJK) noted that the volume of crypto asset trading in Indonesia experienced a drastic decline of 224% on an annual basis (YoY). In fact, as of September 2023, the value of crypto trading in Indonesia only reached IDR 94.4 trillion.
In fact, in 2021, the volume of crypto asset trading in Indonesia reached its peak of IDR 859.4 trillion. However, this figure fell sharply by 63% to IDR 306.4 trillion in 2022 and this downward trend continues until now.
OJK noted that one of the causes of this significant decline in the value of crypto transactions is the high level of taxation. With transaction values continuing to decline, can investing or trading crypto assets still make a profit in Indonesia?
Tokocrypto CEO, Yudhono Rawis, said that the crypto asset buying and selling business in Indonesia still has great potential. He noted that although currently the crypto investment market in Indonesia has reached more than 17 million investors, this figure still represents around 5-6% of the total Indonesian population.
According to him, this condition shows how crypto assets still have enormous room for growth and expansion. Because of this, Yudho decided to continue operating in the field of buying and selling crypto assets, aka crypto exchange.
“When we assess it fundamentally and in terms of regulations and other macro factors, the crypto exchange business in Indonesia is not very attractive. However, there is actually a reason why I am involved here. In simple terms, everything depends on market potential. Indonesia has a population whose majority consists of from the younger generation, and this creates huge potential for the crypto market in the future,” said Yudho in his statement, Thursday (16/11/2023).
Apart from that, Yudhono also emphasized that the growth of Indonesian crypto business players will continue to increase. According to him, this condition can be seen from the report by the Commodity Futures Trading Supervisory Agency (Bappebti) which noted that there were already 32 Prospective Crypto Asset Physical Traders (CPFAK) which promised great opportunities for investors in the crypto space.
Apart from that, Yudho also sees business benefits from the transfer of crypto asset trading regulations from Bappebti to OJK. With stronger and clearer regulations from the OJK, the potential to increase investor confidence in trading crypto assets in Indonesia is even greater.
He feels this could have a positive impact in attracting more participants and capital into the crypto market, which in turn could spur business growth in this sector.
“Imagine if large traditional financial institutions in Indonesia followed the development of institutions in the United States, for example large banks in Indonesia allocated 0.1% of their balance sheets to Bitcoin, then market liquidity in Indonesia would increase significantly. Currently, this is not allowed,” said Yudho.
“The hope is that in five years, with the move to OJK, there will be collaboration between TradFi and crypto. In the future, traditional financial institutions in Indonesia who are interested in crypto can buy it from licensed traders, thereby increasing their business,” he added.
Bitcoin Price
Bitcoin Rises Again, Targets Price Increase to Highest Level of IDR 591 Million. The price of Bitcoin (BTC) rose again on Thursday (16/11), rebounding from the correction two days ago which reached around US$ 34,500. BTC is now targeting prices to close this week with a target of breaking through the level of US$ 38,000 or around Rp. 591 million.
Tokocrypto trader, Fyqieh Fachrur explained that despite macro headwinds, Bitcoin prices are predicted to continue to soar higher. Moreover, US inflation and retail sales data released this week strongly supports the narrative that the Fed’s tightening cycle has ended and the interest rate cut cycle will soon occur. .
The US consumer price index (CPI) was only 3.2% (YoY) in October, down from 3.7% in September. Meanwhile, the producer price index (PPI) for October was only 1.3% (YoY), down from 2.2% in the previous month and well below the estimate of 1.9%. Core PPI fell to an annual rate of 2.4% from 2.7%.
“Cooling inflation may support Bitcoin in the short term as some market participants may be willing to take more risks. When inflation falls, traditional currencies tend to be more volatile in value, which may reduce the attractiveness of investing in assets such as bonds and savings. In this situation , some investors may be looking for more potential alternatives for capital growth, and Bitcoin may be one of their choices,” said Fyqieh.
Additionally, given the economic uncertainty often associated with high inflation, some may view Bitcoin as a form of “hedge” against potential depreciation of traditional currencies. Bitcoin is known for its decentralized nature and limited supply, so it is considered a potential hedging tool against fluctuations in the value of fiat currencies.
Meanwhile, hopes for the approval of a spot Bitcoin ETF in the US remain high, which is one of the factors keeping investors motivated to continue accumulating this asset despite the short-term price decline in Bitcoin. To date, the SEC has still not given approval to the spot Bitcoin ETF. The time window for this approval continues until November 17th, and if the SEC decides to continue its policy of delaying ETF approval, the time window will be extended until January 10th.
“Investors responded by making gradual entries into Bitcoin, supported by strong market confidence and minimal correction. The price of Bitcoin managed to increase from US$ 34,000 (Rp. 527 million) to US$ 38,000 (Rp. 589 million) in a short time. Trust “investors’ positive sentiment regarding ETFs still tends to be bullish,” explained Fyqieh.
Also watch the video: Senior Confession of UI Student Killer: Crypto Loss – Entangled by Pinjol
(fdl/fdl)
2023-11-16 06:08:07
#Crypto #Transactions #Drop #Price #Bitcoin
