JAKARTA, RAKYAT NEWS—The cryptocurrency market has recorded significant gains recently. The approval of the US spot Ethereum ETF by the US Securities and Exchange Commission (SEC) has boosted Bitcoin and most altcoins over the past week, driving increased optimism among investors.

In the final week of May, Bitcoin’s price briefly reclaimed the US$70,000 level, equivalent to around Rp1.12 billion, driven by strengthening European markets and expectations of interest rate cuts by the European Central Bank (ECB). However, this rise was short-lived, and Bitcoin fell back below the US$70,000 level amid a downward trend.

Fyqieh Fachrur, a trader from Tokocrypto, explained that Bitcoin needs to maintain its position above the key support level of US$66,000, or about Rp1.06 billion, to preserve its bullish momentum. However, challenges such as the US Personal Consumption Expenditures (PCE) inflation data and numerous public speeches by Federal Reserve officials could dampen positive market sentiment.

“This week, all eyes are on the series of speeches by Federal Reserve officials, anticipated to provide insights into future US interest rate policies. Meanwhile, market participants are eagerly awaiting signals amid indications of declining US inflation,” Fyqieh said.

Currently, Fyqieh noted, investors and traders are starting to speculate about the potential start of an altseason, triggered by a recent surge in total altcoin market capitalization. Ethereum (ETH) is leading the altcoin rally alongside various memecoins. ETH has seen a significant increase, with its price reaching around US$3,991 (Rp64.2 million), up 27% over the past week.

According to TradingView data, the total altcoin market capitalization now stands at approximately US$1.16 trillion, marking a 15% increase over the past two weeks. This surge is approaching the resistance level seen in mid-March when market capitalization reached US$1.2 trillion.

“The recent approval of the Ethereum ETF in the United States has had a substantial impact on altcoins in the current bullish market. When Bitcoin corrects, Ethereum often leads the way, showing impressive gains. Ethereum’s upward trend may coincide with Bitcoin’s consolidation phase, during which investor attention and capital flow toward established altcoins, resulting in significant price appreciation,” Fyqieh explained.

Fyqieh added that the altseason might undergo a consolidation phase before gaining full momentum. Following the Ethereum ETF, several other altcoins, including XRP, Litecoin (LTC), Solana (SOL), Pepe, and Floki, may also seek their fortunes. The market appears bullish in welcoming ETFs in an unprecedented manner.

On the other hand, a positive factor that could drive Bitcoin’s price higher is the achievement of the Bitcoin ETF. The US Spot Bitcoin ETF has reached a milestone of holding 1 million BTC, representing 5% of the total supply. The top three Bitcoin ETF holders are Grayscale, BlackRock, and Fidelity.

The trading of Bitcoin and Ethereum ETPs on the London Stock Exchange on May 28, 2024, also marks a significant step, highlighting the growing adoption of crypto assets by traditional financial institutions. Many speculate that Bitcoin might experience a rally following this achievement.

Amid the rising potential of altcoins in the crypto market, Tokocrypto has launched the Top Up Dapet Profit (TDP) and 100% USDT Cashback programs, offering total rewards of up to Rp60 million. These programs are designed to incentivize users who actively trade and top up on the Tokocrypto platform from May 22 to June 15, 2024.

Through TDP, users not only have the opportunity to increase their crypto assets but also stand a chance to win attractive prizes in the form of cashback in USDT. Additionally, these programs aim to encourage broader participation from the Indonesian crypto community and enhance digital asset literacy and usage among the public.

The Commodity Futures Trading Regulatory Agency (Bappebti) reported that crypto trading transaction values in Indonesia continue to grow. In April 2024, crypto transactions in Indonesia reached Rp52.26 trillion. From January to April 2024, the value of physical crypto asset trading in Indonesia amounted to Rp211.1 trillion.

The number of crypto investors in Indonesia has also increased. As of April 2024, there were 20.16 million crypto investors, an increase of approximately 422,258 people or 2.08% compared to March 2024, which had 19.75 million investors. (Uki Ruknuddin)