Bitcoin Hits Two-Week Low Amid Disappointing Performance of New Hong Kong ETFs
Summary:
Bitcoin reached a two-week low on April 30 due to disappointing performance of recently launched spot price exchange-traded funds (ETFs). The BTC/USD pair experienced a sharp decline, breaking the $61,000 support level. Cryptocurrency liquidations amounted to $275 million in 24 hours, and trading volumes for Hong Kong's new Bitcoin ETFs were considerably below expectations. Despite this, Bloomberg Intelligence analyst Eric Balchunas expressed a positive outlook on the overall performance.
Bitcoin (BTC) reached its lowest point in two weeks on April 30 due to disappointing performance of newly launched spot price exchange-traded funds (ETFs). Information from Cointelegraph Markets Pro and TradingView reveals that BTC/USD pair experienced a sharp decline following the Asia trading session, breaking below the $61,000 support level. Cryptocurrency liquidations summed up to $275 million in a span of 24 hours, according to data from monitoring source CoinGlass.
Caution within the market increased as it was evident that the trading volumes of newly established Bitcoin ETFs in Hong Kong did not meet projected targets on their opening day. Bringing in $12.4 million, the performance seemed significant for the local market according to Bloomberg Intelligence analyst, Eric Balchunas. He commented positively on the outcome through the social platform, X (previously Twitter).
Comparing the results to U.S trading figures, Balchunas tweeted, "East vs West: The US did $740m in assets and $4.6b in trading. These are far below that but if you adjust for the size of their mkt it is dif story: equiv of $25b+ and $1.6b, respectively". He also noted the considerable launch timing of the Hong Kong Bitcoin ETFs contributing to an overall increase in spot ETF flows, when U.S volumes have been just "slightly negative".
Investment firm Farside based in the United Kingdom confirmed continuous net outflows for U.S. ETFs in four consecutive days up until April 29. Questions about potential reversal of the current BTC price slump, had the market participants looking at both $60,000 and the territory beneath.
Yann Allemann and Jan Happel, co-founders of the firm Glassnode, stated that, "The 50-day EMA stands as potential support, while the $60k level seems like robust bottom for the current consolidation range, extending up to $74k”. Allemann and Happel referred to the 50-day exponential moving average (EMA), while trader Wolf observed the 21-day counterpart. These trend-lines both were nearly at $64,500 when the report was written, suggesting a potential widening gap with the daily candle.
Axel Adler, another trader, pointed out that Bitcoin futures were going short, raising uncertainties over impending support. The article concludes reminding its readers that any investment and trading move involves risk, and they need to do their own research while making decisions.
Published At
4/30/2024 5:36:47 PM
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