On Monday, the Hong Kong Securities and Futures Commission (SFC) made public its approval of several Spot Bitcoin and Ethereum Exchange-Traded Funds (ETFs), enabling their trading. This development, which had been eagerly anticipated in crypto circles, came after a significant delay. True to form, this announcement sparked a bullish market response, leading to a noticeable rebound in the prices of various cryptocurrencies.
Bitcoin Bounces Toward $67,000
Over the past weekend, the crypto market experienced a significant downturn causing Bitcoin’s price to dip below $60,000. This event was fueled in part by tensions between Iran and Israel, with some fearing it could lead to a larger conflict such as World War III. Fortunately, both parties have since de-escalated, allowing the markets to begin healing.
During the market’s recuperation process, the Hong Kong Securities and Futures Commission made an announcement that significantly lifted investor sentiment. This news came at a crucial time when the price of Bitcoin hovered around $64,000. Consequently, the announcement caused the Bitcoin price to surge past this level.
An explanation for the Hong Kong Securities and Futures Commission’s decision to allow trading of Spot Bitcoin and Ethereum ETFs might be: The approval stems from the thriving success of Spot Bitcoin ETFs in the US market. With institutional investors pouring funds into these ETFs, Bitcoin prices have surged in response to their increased holdings.
Just like Chinese investors are now able to purchase Spot Bitcoin and Ethereum ETFs, leading to an anticipated surge in buying since these funds must actually own the cryptocurrencies they represent. Consequently, we can expect a significant increase in purchases over the next few weeks.
Can BTC Reclaim $70,000?
Despite the recent market downturn over the weekend, there is continued optimism among crypto investors. This is evident in the market’s bullish stance, as many believe the dip was an opportunity to purchase more Bitcoin. The cryptocurrency’s current price, which has risen by over 3% to surpass $66,000 within the last day, supports this perspective.
Furthermore, Bitcoin ETF providers are actively purchasing the cryptocurrency, causing their assets under management (AuM) to surpass 4.7% of the entire Bitcoin supply. With Hong Kong funds entering the market, the percentage of Bitcoin owned by institutional investors is projected to significantly expand. This intense competition among investors to acquire more Bitcoin could potentially result in a shortage of available supplies.
If there’s a shortage of Bitcoin supply, the price may jump back up towards $70,000 – just a 4% increase from the current point. To set a new record high, however, Bitcoin would need to climb around 12%, which has been achievable in recent months with relative ease.
Read More
- BCH PREDICTION. BCH cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- LUNC PREDICTION. LUNC cryptocurrency
- MNT PREDICTION. MNT cryptocurrency
- USD PHP PREDICTION
- SOL PREDICTION. SOL cryptocurrency
- USD COP PREDICTION
- ZKJ PREDICTION. ZKJ cryptocurrency
- USD MYR PREDICTION
- PSTAKE PREDICTION. PSTAKE cryptocurrency
2024-04-15 17:11