As a seasoned crypto investor, I’ve witnessed the volatile and dynamic nature of this market firsthand. The recent price relief experienced by Bitcoin (BTC) following the launch of new spot Bitcoin exchange-traded funds (ETFs) in Hong Kong is an encouraging sign for the industry in Asia.
On April 30, Bitcoin (BTC) made an effort to maintain its upward trajectory due to a significant development in the institutional sector based in Hong Kong, providing a notable push.
Hong Kong ETFs deliver BTC price relief
The data obtained from CryptoMoon Markets Pro and TradingView indicated that the closing price of Bitstamp reached a local peak of $64,714 following the daily market settlement.
As a crypto investor, I was thrilled to witness the simultaneous rollout of new Bitcoin spot Exchange-Traded Funds (ETFs) in Hong Kong. This development marked a pivotal turning point for the Bitcoin industry in Asia, where the conditions have historically been less conducive to the mainstream adoption of Bitcoin as an asset class.
Despite being overshadowed by US ETFs due to the United States being the world’s largest economy, this signifies a significant change in position from the East compared to only a few years ago, according to financial commentator Tedtalksmacro in regard to X (formerly Twitter).
“Slowly, than all at once. We are right on track for BTC to continue it’s growth into a global, macro asset.”
As a researcher studying the development of Exchange Traded Funds (ETFs) based on cryptocurrencies, I’ve observed noteworthy distinctions between the initial stages of the Hong Kong setups and the United States’ versions that commenced trading in mid-January. Specifically, I’ve noticed that the Hong Kong exchanges have demonstrated a more streamlined and efficient approach to the launch process, likely due to their prior experience with cryptocurrency trading platforms.
The price action of Bitcoin showed signs of improvement this week after hitting lows below $62,000 to begin with.
As a crypto investor, I recently took note of Daan Crypto Trades’ analysis where he identified a breakout from a falling wedge formation. Now, we’re observing this potential support level being retested.
Keith Alan, a co-founder of trading resource Material Indicators, raised the question if Exchange-Traded Funds (ETFs) could significantly influence the long-term price trends. He pointed out that an important decision from the Federal Reserve regarding interest rates was scheduled for May 1st. Historically, this date has been preceded by increased selling pressure from brokerage firms on crypto markets.
“Hong Kong stock market bulls may charge through the resistance at $65,500 or exhibit more caution, postponing their moves until the end of the month and awaiting the Federal Reserve Chair Powell’s remarks on Wednesday for direction in May.”
An accompanying chart showed major areas of liquidity on the Binance BTC/USDT order book.
Funding rates support Bitcoin leveraged longs
Across derivatives platforms, meanwhile, funding rates remain skewed slightly negative.
As a crypto investor using DecenTrader, I noticed the absence of significant volatility in the market today. However, this stability might not indicate a strong trend, but rather unpredictable market conditions. Consequently, traders should remain cautious and prepared for potential shifts in either direction.
As a crypto investor, I’ve noticed that Bitcoin’s average funding rate has been trending negatively lately, reflecting in the chart I’m looking at. The price action of Bitcoin seems to be bouncing around without any clear direction.
“The market appears to be unsure of the next breakout direction.”
As a researcher examining market updates, I came across QCP Capital’s acknowledgment in their latest “London & New York Color” edition, released on April 29 via their Telegram channel subscribers, regarding the current uncertainty surrounding funding.
Despite the current low short-term market volatility due to the narrow trading range, there’s a risk that investors are underestimating the potential risks from various macroeconomic factors such as Middle East conflicts, possible US stagflation, Yen weakness, and US fiscal injections.
“Perp funding is largely flat with many Altcoins showing negative funding which opens up a path for speculators to build leveraged long positions.”
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2024-04-30 11:34