.The world was shocked by the explosion in the price of Bitcoin crypto assets which penetrated USD 19,319 on Wednesday, November 25, 2020. That is almost equivalent to the highest point ever reached on December 17, 2017, namely USD 20,089. This is never unexpected. The reason is, in March 2020, the price of Bitcoin also fell to a level that was unexpected by observers, namely USD 3,600 per Bitcoin, even though a month later it had doubled to reach USD 7,000 per Bitcoin. Reflecting on the trend of price changes, when compared to prices in April 2020, the Bitcoin price on November 25 has increased by 250 percent.
"You can imagine of course the profit that investors will get if they buy Bitcoin in early April this year, their investment has now doubled 2.5 times in just half a year," said Pang Xue Kai, co-founder & CEO of Tokocrypto, a crypto asset trading platform. Kai, his nickname, continued that the Bitcoin price movement is believed by various parties to continue. He also disclosed a number of factors that led to the increase in the price of Bitcoin. Among other things, the Bitcoin halving which entered its third phase on May 12, 2020. Halving or halvening Bitcoin is a process of reducing the supply of Bitcoin and is related to the limited amount of Bitcoin which is only 21 million Bitcoin. The first halving occurred in 2012, the second in 2016, and the last in May 2020. It is noted that some time after the halving process, the price of Bitcoin has always skyrocketed. In the first halving phase in November 2012, the price of Bitcoin skyrocketed more than 9,600 percent, from USD 12 to USD 1,160 as of November 2013 or a year after the halving. However, at the second halving in July 2016 the price of 1 BTC was around USD 600 only. After the halving, the price of Bitcoin has skyrocketed again, even breaking all-time records to reach USD 20,000 in December 2017 or up 3 thousand percent more. "Because it's not surprising, we see history repeating itself at this time. At the third halving in May 2020, the Bitcoin price was USD 8,500 per BTC. But now, 6 months after the halving, the price broke USD 19,000 on Wednesday, November 25 yesterday. , or an increase of more than 220 percent, "said Kai explained.
Seeing the increase in the price of Bitcoin which is "only" in the hundreds of percent after the third halving, it is not surprising that many analysts predict the price of Bitcoin will continue to increase, even projected to penetrate USD 318,000 by the end of 2021 or increase by 3,700 percent. The phenomenon of the Bitcoin price explosion was also accompanied by increases in the prices of other cryptocurrencies such as Ethereum (ETH), Ripple (XRP) and Binance Coin (BNB). In an interview with The Guardian on November 17, JP Morgan analyst Nikolaos Panigirtzoglou said that the increase in the prices of various other crypto assets could not be separated from the effects of the crisis due to the Covid-19 pandemic. The current crisis, according to Nikolaos, triggered a shift in long-term investment patterns for investors. Coupled with the weakening of gold prices over the past four months, this crisis has also triggered investors to include crypto assets into their long-term portfolios. "This crisis has triggered a reconsideration of the value of Bitcoin as an alternative currency, as well as an investment alternative to gold," said Nikolaos.
Public trust increases Referring to some of the things mentioned above, public trust in crypto assets can be called increasing. "Public confidence in Bitcoin has started to recover after the market crash in early 2018," said Kai. Therefore, Kai believes that now is the right time to start investing and also get involved in crypto asset trading. "We certainly don't want to miss the carriage again for the umpteenth time to be able to take advantage of investing as well as trading crypto assets. We at Tokocrypto also continue to improve security as well as various features on our platform so that we can continue to be a trusted crypto asset trading center in Indonesia," said Kai confirmed. Welcoming the Bitcoin price movement towards the highest price point, Tokocrypto also held the Bitcoin Bull Marathon program. "In this activity, which will be held starting Monday, November 30, 2020, those who deposit and trade will get very attractive rewards. Especially at Tokocrypto, transaction fees are very low, only 0.1 percent and rupiah withdrawals are only Rp.5,500," Kai said.
