As a seasoned crypto investor with a few years of experience under my belt, I’ve seen my fair share of market volatility and price swings. The recent events surrounding the Bitcoin price drop after the disappointing Hong Kong ETFs debut have left me feeling a bit uneasy.
The price of Bitcoin dropped approximately 5% from its peak of $64,734, as investors reacted coolly to the launch of Bitcoin and Ether ETFs in Hong Kong. The selling pressure intensified, pushing Bitcoin’s value below the previous day’s price. The market had built up significant leverage, expecting a relief rally, which contributed to the magnitude of the selloff. Unfortunately, the debut of these crypto ETFs in Hong Kong failed to generate the excitement the market had anticipated.
Additionally, U.S.-listed Spot Bitcoin ETFs have experienced outflows for the fourth day in a row, totaling over $51 million. These crypto investment funds have seen three successive weeks of outflows, with the largest withdrawal amounting to $435 million during this period.
Bitcoin Price Slips After Disappointing Hong Kong ETFs Debut
On their first day of trading, Hong Kong’s Bitcoin and Ethereum ETFs with a “six-dot” status saw a meager trading volume of $12 million. In comparison, the US Bitcoin ETFs had a remarkable debut with a trading volume 383 times greater than this figure.
After a day of decreased trading volume for ETFs, traders initiated a wave of selling Bitcoin, which was reported by Coinglass. This action led to a sharp decrease in Bitcoin’s price, reaching a low of $61,451. Subsequently, this event instigated a broader selloff within the crypto market, resulting in investors experiencing losses amounting to approximately $130 billion and a reduced crypto market capitalization to around $2.27 trillion.
Some guys are shorting #BTC
— CoinGlass (@coinglass_com) April 30, 2024
Over $205 million worth of cryptocurrency positions were terminated during the market downturn, with approximately $145 million being long positions and around $60 million being short positions.
As a market analyst, I’d rephrase it this way: Approximately 66,000 traders faced liquidation across various crypto exchanges, with the largest single order worth $5.03 million being executed on Binance. The ETH token experienced a significant drop of over 5% in value within the past 24 hours.
Macro Factors Shows Volatility Ahead Fed Rate Decision
As a researcher studying market trends, I’ve noticed that oil prices have seen a modest increase of 0.23%, while gold prices took a dip of 0.71% today. The financial world is currently on edge, with investors anxiously anticipating the Federal Reserve’s upcoming policy decision and the release of non-farm payrolls data scheduled for later this week.
While the US dollar index (DXY) has advanced towards 106, currently rising 0.10% to 105.69, the US 10-year Treasury yield (US10Y) has surged to a 6-month high of 4.636%. Conversely, Bitcoin has been moving in the opposite direction, with pressure continuing to mount on the cryptocurrency. However, the upcoming Q2 2024 Treasury refunding announcement could potentially shift the advantage back towards Bitcoin.
The upcoming Federal Reserve meeting on May 1st holds significant weight for both the crypto and stock markets. Jerome Powell, the Fed chairman, may adopt a more aggressive stance during this gathering, indicating fewer than anticipated rate cuts in 2023. Recent data from US inflation indicators, including CPI, PCE, and PPI, have shown unexpectedly high readings, fueling speculation among policymakers about potential interest rate adjustments.
Bitcoin remains precarious according to crypto analyst Rekt Capital, with a potential drop below the $60,000 mark. However, he also forecasts a strong likelihood of an uptrend emerging around mid-May.
#BTC
The Bitcoin “Danger Zone”
The Bitcoin Pre-Halving “Danger Zone” (orange) is where historical Pre-Halving Retraces have begun
Historically, Bitcoin has performed Pre-Halving Retraces 14-28 days before the Halving
This cycle was no different and here’s why:
Because…
— Rekt Capital (@rektcapital) April 30, 2024
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2024-04-30 14:16