Heaptalk, Jakarta — Indonesia’s crypto industry continues to grow significantly, with transaction values and investor numbers rising steadily. According to the latest data from the Commodity Futures Trading Regulatory Agency (CoFTRA), crypto transaction values attained US$3.15 billion, approximately Rp48.92 trillion, in August 2024, an increase of 15.54% compared to the previous month’s about US$3.12 billion.
In January – August 2024, the total transaction value of crypto assets surged to US$25.2 billion, representing a 360.03% growth compared to the same period last year, which was recorded at US$9.6 billion. The data revealed that Tether USD (USDT), Bitcoin (BTC), Ethereum (ETH), USD Coin (USDC), and Pepe (PEPE) dominated the crypto transactions in the archipelago.
“The growth in crypto asset transaction values in Indonesia is driven by rising digital literacy and crypto’s appeal as an attractive investment alternative. USDT, Bitcoin, and Ethereum remain the dominant instruments capturing the interest of investors in Indonesia,” The Head of the Development and Supervision Bureau for Commodity Futures Trading at CoFTRA, Tirta Karma Senjaya, said.
In addition to transaction values, the number of crypto investors in the country has also increased. As of August 2024, the number of crypto customers reached 20.9 million, rising by nearly 400,000 compared to the former. This trend indicated consistent adoption among the public, even as crypto asset volatility remains a key concern.
Bitcoin Growth Outlook
Despite a price drop in early October 2024, many analysts remain optimistic that the Bitcoin market will soon recover. Historically, October has often been a strong month for Bitcoin, with several significant price gains. For example, in October 2023, Bitcoin surged by more than 28%. Many observers predict this trend could repeat this year, even though the market has faced selling pressure at the beginning of the month.
At the end of September, Bitcoin’s price dropped sharply from US$65.609 to US$60.805 within a short period. This decline was exacerbated by escalating geopolitical tensions, particularly the conflict between Israel and Iran.
These tensions caused Bitcoin to fall 6% in a single day, accompanied by significant fund outflows from Bitcoin ETFs. Fidelity’s FBTC saw a withdrawal of $144 million, while ARKB recorded a drop of $84 million. In addition to geopolitical concerns, Bitcoin’s market was further impacted by statements from Federal Reserve Chair Jerome Powell, who has yet to signal any imminent rate cuts. This lack of reassurance triggered investor concerns, amplifying selling pressure in the crypto market.
Despite these challenges, many experts remain hopeful that Bitcoin will bounce back, as historical trends and the potential for positive market catalysts could drive a recovery later in the month. Nevertheless, Tokocrypto’s Trader Fyqieh Fachrur admitted that Bitcoin’s decline is merely a temporary seatback. He added that the seasonal trend of October being the best month for Bitcoin still holds.
“Bitcoin frequently experiences a drop in September before beginning a price surge in October. Although there is selling pressure right now, Bitcoin could reach new highs in the coming weeks, following a historical bullish pattern,” said Fyqieh.
He further noted that Bitcoin tends to go through a recharge phase before eventually soaring in October. While the potential decline remains challenging for the investors, he believes that Bitcoin will hit new all-time highs in the coming weeks.
