Indodax: BTC Proves Resilience Amid Global Market Uncertainty

This situation is driving increased investor attention towards Bitcoin as an alternative hedge amid market turbulence. Jakarta (ANTARA) - The digital currency Bitcoin (BTC) is seen to have proven its resilience with a rise of around 12 per cent over the last 60 days and trading in the range of $70,000 - $71,000 per Tuesday (24/03), amid escalating conflict in the Middle East triggering uncertainty in the global financial markets. In contrast, the S&P 500 index has fallen around 4 per cent, while gold prices have corrected by up to 16 per cent, recording the largest decline since 1983 by reaching levels around $4,400 per troy ounce. “This condition is driving increased investor attention towards Bitcoin as an alternative hedge amid market turbulence,” said Indodax Vice President Antony Kusuma in Jakarta on Wednesday. He explained that Bitcoin’s strong performance during crises is not a new phenomenon but a pattern that has occurred previously, such as during the COVID-19 pandemic crisis, the 2020 US-Iran tensions, and the Russia-Ukraine conflict. “Bitcoin’s decentralised characteristics, 24-hour tradability, and independence from conventional banking systems make it relevant amid disruptions to financial system stability due to geopolitical conflicts. This makes Bitcoin practically functional as well as having potential as an alternative hedge,” he stated in his remarks. Previously, JPMorgan’s Head of Metals Strategy, Greg Shearer, mentioned that the decline in gold prices was triggered by sell-off actions amid a surge in oil prices due to the Middle East conflict, which is increasing inflation concerns. This pressure is also driven by the strengthening of the US dollar and rising gains from bonds, making gold less attractive compared to yield-generating assets and potentially changing the pattern of gold purchases by central banks. On the other hand, tensions in the Middle East impacting global energy distribution routes in the Strait of Hormuz are increasing inflation risks due to surging oil prices. This condition is prompting expectations that the Fed will maintain high interest rates for longer. In such conditions, Antony added, gold, which does not provide regular yields, tends to lose appeal, especially for institutional investors. Nevertheless, the crypto market remains in a volatile phase with cautious sentiment, he continued, macroeconomic factors such as inflation and interest rate policies will still determine the direction of price movements going forward. “Therefore, investors are advised to continue paying attention to risk management and understanding market dynamics comprehensively before making investment decisions,” he said. As a player in crypto asset trading, he continued, they remain committed to providing safe, transparent, and easily accessible services to the public. In addition, they regularly publish Proof of Reserves (PoR) data that is publicly accessible on CoinMarketCap, and actively promote literacy and education so that the public can invest in crypto assets wisely and responsibly.