Why can the ETH IDR price go up and down so drastically? Find the Reason Here!

Bittime - Want to know what factors influence the price of ETH against IDR? This article reviews various aspects that influence ETH IDR value fluctuations, so you can understand the dynamics of the crypto market better.

1. Demand and Supply

The fundamental factors that influence the ETH IDR price are supply and demand. When demand for Ethereum (ETH) increases, while supply is limited, the price of ETH tends to rise. Conversely, when supply exceeds demand, the price of ETH tends to fall.

Increased Demand

ETH demand can increase for various reasons, such as:

• Technology Adoption: Increased use of Ethereum technology in decentralized applications (dApps) and smart contracts.
• Uses in DeFi: Popularity of decentralized finance (DeFi) which uses ETH as collateral.
• Investment: Investor interest in adding to their crypto portfolio with ETH.

Limited Offer

ETH supply can be affected by:

• Mining: The rate of mining that adds new supply of ETH to the market.
• Staking: ETH staked in the Ethereum 2.0 network reduces the available supply in the market.

2. Global Market Movements

The crypto market is global and influenced by various international factors:

Government regulations

Regulations implemented by governments of various countries can have a big impact. Supportive regulations can push prices up, while restrictive or prohibitive regulations can cause prices to fall.

News and Market Sentiment

News related to blockchain technology, Ethereum, or crypto in general can influence market sentiment. Positive news such as increased technology adoption or strategic partnerships can raise prices, while negative news such as hacks or strict regulations can lower prices.

3. IDR Exchange Rate

Fluctuations in the Rupiah (IDR) exchange rate against major world currencies, such as USD, also affect the ETH IDR price:

Inflation and Monetary Policy

Monetary policies implemented by Bank Indonesia, such as interest rates and inflation control, can affect the IDR value. A strong IDR value can make the ETH price lower in IDR, while a weak IDR value can increase the ETH price in IDR.

Economic Stability

Indonesia's economic stability also plays an important role. A stable economy tends to strengthen the value of the IDR, while economic instability can weaken the IDR and affect the ETH IDR price.

4. Ethereum Technology and Development

Technological advances and developments on the Ethereum network also influence the ETH IDR price:

Network Upgrades

Ethereum network upgrades, such as Ethereum 2.0, which improve efficiency and scalability, could increase demand for ETH and push the price up.

Network Security

The level of network security also plays an important role. High security attracts more users and investors, while security issues can reduce trust and lower prices.

5. Competition with Other Crypto Assets

ETH competes with other crypto assets, such as Bitcoin (BTC) and other altcoins:

Market Domination

Bitcoin's dominance in the crypto market often influences the price of ETH. When Bitcoin experiences an increase in price, usually altcoins such as ETH also follow that trend.

Innovations from Other Projects

Innovation and development from other crypto projects that offer more attractive technology or features can influence the demand for ETH. Intense competition could put pressure on ETH prices if users and investors switch to other projects.

The price of ETH against IDR is influenced by various factors, starting from supply and demand, global market movements, fluctuations in the IDR exchange rate, Ethereum technology and development, to competition with other crypto assets. Understanding these factors can help you make better investment decisions and take advantage of opportunities in the crypto market.

How to Buy Crypto on Bittime

You can buy and sell crypto assets in an easy and safe way via Bittime. Bittime is one of the best crypto applications in Indonesia which is officially registered with Bappebti.

To be able to buy crypto assets on Bittime, make sure you have registered and completed identity verification. Apart from that, also make sure that you have sufficient balance by depositing some funds into your wallet. For your information, the minimum purchase of assets on Bittime is IDR 10,000. After that, you can purchase crypto assets in the application.

Monitor price chart movements of Bitcoin (BTC) , Ethereum (ETH) , Solana (SOL) and other cryptos to find out today's crypto market trends in real-time on Bittime.