Crypto News- The recent dip in BTC Price seems to echo a familiar tune, reminiscent of its post-launch behavior following the introduction of United States-based spot Bitcoin exchange-traded funds (ETFs) back in January. Could this mean a potential upswing in the coming days?
Spot Bitcoin (BTC) has taken a slight tumble, now clocking in at $60,670.
BTC Price Trends Follow Suit: US Bitcoin ETF Launch Echoes on Charts
ETFs for Bitcoin debuted in Hong Kong on April 30, pulling in roughly $217 million in net inflows since their inception. However, the price of Bitcoin has dipped by nearly 7% since the ETFs hit the market, according to data from CoinMarketCap.
Quinten Francois, co-founder of WhereAt Social and a seasoned crypto trader, drew parallels between this behavior and the launch of spot Bitcoin ETFs in the U.S. He noted that following the U.S. ETF launch, Bitcoin’s price plummeted by 14% within 12 days, only to bounce back by 7% over the subsequent week. Francois speculated that if history repeats itself, we might witness an upswing in the “next week or so,” as he shared in a May 1 post on X.
However, it’s worth noting some disparities between the two launches. While Hong Kong’s Bitcoin ETFs have seen a net inflow of $217 million, their U.S. counterparts experienced a whopping $794 million outflow during the same timeframe.
Additionally, the trading volumes tell a different story. Hong Kong’s ETFs only managed to accumulate $12.4 million in trading volume on their debut day, a far cry from the impressive $4.6 billion seen with U.S. spot Bitcoin ETFs.
Navigating Turbulent Waters: Hong Kong ETF Launches Amid Bitcoin Halving and Global Uncertainty
These launches in Hong Kong coincided closely with the Bitcoin halving, often ushering in a phase of sideways price movement, alongside ongoing geopolitical tensions in the Middle East and the U.S. Federal Reserve’s persistent maintenance of high interest rates.
Eric Balchunas, an ETF analyst at Bloomberg, pointed out on April 30 that despite Hong Kong’s smaller size relative to the U.S., the $217 million inflow is significant.
However, there’s some apprehension among traders. Concerns linger that inflows from Hong Kong might not suffice to counterbalance the substantial outflows from the U.S., potentially stymieing a similar breakout pattern.
“On the other hand, some traders view the recent price correction as a necessary adjustment for Bitcoin’s trajectory,” remarked Titan of Crypto in a post on X.
CryptoCon’s Perspective: The Necessity of Bitcoin’s Recent Correction
CryptoCon, a prominent crypto commentator, echoed similar sentiments, stating, “Bitcoin’s recent correction was overdue and essential for its future price trajectory.”
Founder of AirBtc, Handre van Heerden, chimed in with a note of defiance, asserting, “The thing Bitcoin critics fail to grasp is that we’re unfazed by price drops.”
In the ever-evolving landscape of cryptocurrency, each fluctuation sparks debates and speculations, leaving traders and enthusiasts alike eagerly awaiting the next turn of events.
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