The prices of Bitcoin, Ethereum, and other cryptocurrencies returned to light on Tuesday (8/2/2022) Indonesian time, continuing the strengthening that had occurred since last weekend.
Launching data from CoinMarketCap at 09:00 WIB, only digital coins (tokens) of the stablecoin type, namely Tether and USD Coin, are traded in the red zone today.
While the rest were observed to be bright again this morning. Bitcoin jumped 4.58% to a price level of US$ 44,056.43/coin or equivalent to Rp. 633,531,463/coin (assuming an exchange rate of Rp. 14,380/US$), Ethereum jumped 4.32% to a level of US$ 3,152.38/coin or IDR 45,331,224/coin.
Bitcoin and other cryptocurrencies are observed to be recovering and moving further away from their low levels in January, although the distance from the highest prices for Bitcoin and Ethereum is still likely to be far.
After Bitcoin successfully touched the psychological level of US $ 40,000 at the end of last week, the price is now in the range of the level of US $ 44,000.
The recovery in crypto prices occurred amid the collapse in the price of Facebook's parent stock, namely the Meta Platform, which continued until the close of trading last Monday in the United States (US).
In fact, Meta's revenue growth projections are likely to be weaker than expected in the next quarter. Meta's market capitalization has also lost US$ 237 billion or equivalent to Rp. 3,409 trillion (exchange rate of Rp. 14,350/US$) in last Thursday's trading on the Nasdaq exchange.
Apart from the collapse of Meta shares due to investors' disappointment in financial performance at the end of last year, the re-brightness of the crypto market was partly driven by the liquidation of several short positions that had accumulated in the last three months downtrend in virtual currencies.
"The current gains come after a sizeable range-bound price action that saw volume dry up and short positions increased," said Joe DiPasquale, CEO of BitBull Capital, a cryptocurrency hedge fund management firm.
Meanwhile, according to Blockchain data provider company Glassnode, in its latest research report on Monday, said that the Bitcoin chart showed a short position when the price was under pressure last week, tending towards short-side liquidation.
The crypto market has been in recovery mode in recent sessions and recorded an inflow of US$85 million by institutional investors last week, according to a report from digital asset manager CoinShares released on Monday.
Bitcoin led the inflow of $71 million, the most since early December. However, on a year-to-date basis (YTD), Bitcoin still posted a net outflow of US$ 60 million.