Crypto:
30349
Bitcoin:
$64.213
% 0.24
BTC Dominance:
%54.0
% 0.22
Market Cap:
$2.34 T
% 1.02
Fear & Greed:
63 / 100
Bitcoin:
$ 64.213
BTC Dominance:
% 54.0
Market Cap:
$2.34 T

Bitcoin’s Behavior Post-Hong Kong ETF Launch Echoes U.S. ETF Pattern, Analysts Predict Upswing

Bitcoin Etf

Bitcoin’s recent price rally just after the debut of spot Bitcoin exchange-traded funds (ETFs) in Hong Kong resembles its behavior in U.S. ETFs’ launches, and this gave rise to traders and analysts’ extensive discussions on possible crypto market tendencies in the future.

Similarities in Bitcoin’s Price Movement Post-Hong Kong ETF Launch

The launch of the spot Bitcoin ETFs in Hong Kong on April 30 has turned out to be a historic landmark, with investors pouring in as much as $217 million since the inception of the trading. On the other side, the price of Bitcoin has dropped by almost 7% compared to the last week since its appearance in the market, according to information from CoinMarketCap.

Quinten Francois, the co-founder of WhereAt Social and one of the industry’s best-known traders, likened the IPO of the first spot Bitcoin ETFs in the US to the current cryptocurrency rise. Francois observed that traditionally, bitcoin and the U.S. ETF announcement caused a 14% decline in the day after a week and then a 7% increase after 7 days. He implied that if the current situation remains the same, Bitcoin may hit the roof during “the next week or even so.”

Key Differences between Hong Kong and U.S. ETF Launches

Nevertheless, although there might be the same volatility in the price movements, there are telling features that distinguish the launches. Meanwhile, in Hong Kong, ETFs attracted big flows, yet we have a scenario in the U.S. where ETF outflows hit $794 million for the same period. The trading volume in Hong Kong of $12.4 million is hardly noticeable when compared to the US $4.6 billion market capitalization.

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Even though Eric Balchunas, a Bloomberg ETF analyst, affirmed the magnificence of the inflow figure in the small economy of Hong Kong compared to that of the US market, there is still room for further improvement. Nevertheless, traders are still doubtful of whether the flow of Hong Kong would be large enough to offset that of the US. The latter could limit the same surge that may occur in the case of the US.

Some traders see this recession, at least in part, as corrections that are the natural effect of consolidation necessary for gradual growth in price. Titan of Crypto highlighted that Bitcoin’s price might meet the trend line during this consolidation, which indicates bullish expectations from some of the investors in the market.

While some traders are bullish on crypto assets, others aren’t so sure. The cryptocurrency trading team TOBTC arouses concerns that, in case the fall of prices in the U.S. markets is too rapid, the Hong Kong ETFs cannot withstand the selling pressure, cautioning against hasty predictions about future fluctuations.

However, the MITI stands for the diversified impressions of the BTC’s current actions, yet what remains obvious among devotees is the common idea. Handre van Heerden, CEO of AirBTC, did not neglect the long-term potential of Bitcoin through the roaring of the coin. He, rather, shed light on the persistent community’s unwavering patience for the full realization of bitcoin’s future vision.

Throughout the cryptocurrency world, analysts are constantly prone to being on the lookout and monitoring Bitcoin’s price in search of hints of future trends.

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