The past week in BTC price analysis was filled with excitement, starting with a surge to reach $72,725. However, this unexpected bullish trend came after a drop in price to $64,500 the previous week left investors taken aback. This uneasiness was further fueled by unexpectedly high inflation figures reported in the US through the Consumer Price Index (CPI). Consequently, another sell-off ensued, pushing the Bitcoin price down to $67,500. The market then saw a rebound as traders seized the opportunity and bought the dip, causing the price to climb back above $70,000.
On Fridays during US business hours, Bitcoin‘s largest cryptocurrency price stays around $70,775. This surge is mainly driven by increasing net inflows into Bitcoin ETFs and the anticipated approval of comparable ETFs in Hong Kong the following week.
Hong Kong Bitcoin ETFs Set To Live Next Week
In the upcoming week, it is anticipated that Hong Kong, famed as a global hub for financial transactions with considerable influence on Chinese investments abroad, will give its approval to multiple Bitcoin Exchange-Traded Funds (ETFs).
Based on a study conducted by Matrixport, a crypto firm situated in Singapore, this action might lead to an impressive $25 billion desire for Bitcoin, fueled by Chinese investors.
Investors in mainland China are expected to have strong interest in purchasing Hong Kong-listed shares through the Southbound Stock Connect program.
In early 2024, the surge in Bitcoin’s price was primarily driven by heightened demand following the debut of ten Bitcoin ETFs in the United States during January. According to SoSoValue’s statistics, demand remains strong with a daily net inflow of $91.27 million reported on April 11. Although Grayscale’s GBTC ETF continues to experience outflows, the total cumulative net inflow volume for all Bitcoin ETF providers amounts to $12.58 billion.
Anticipating the potential approval of Bitcoin ETFs in Hong Kong, Matrixport estimated in their report that these ETFs could draw in several billion dollars from mainland investors. This is due to the Southbound Connect program, which enables up to 500 billion RMB (equivalent to HK$540 billion and $70 billion) in transactions each year, making it an attractive opportunity for investment.
Approximately $25 billion, or around 200 million Hong Kong dollars, is projected as potential new demand for Bitcoin ETFs if there are no limitations in place. However, it remains undecided if Chinese mainland investors are allowed to buy and sell these spot Bitcoin ETFs.
Despite the optimistic view, gold prices hitting new highs in Shanghai remained a significant factor.
BTC Price Analysis As 21,000 Options Expire
After a market turbulence caused by unexpectedly high US inflation figures, surpassing the anticipated 3.4% with a 3.5% annual increase, Bitcoin’s price bounced back above $70,000. This unexpected development in inflation data suggested that the first Fed interest rate reduction, initially predicted for 2024, might be delayed.
Despite the optimistic outlook on the Bitcoin market due to the upcoming halving event, approximately 21,000 BTC options with a Put-Call Ratio of 0.62 (indicating a higher demand for put options, which bet on a price decrease) set to expire could potentially disrupt the current upward trend based on data from Greeks.live.
The options carry a “maxpain point of $69,000 and a notional value of $1.5 billion.”
Amid increased cryptocurrency market instability, Bitcoin fluctuates between the mid $60,000 and lower $70,000 price points. Additionally, an uptick in sell orders linked to the upcoming halving event could intensify market swings.
On the 12th of April, approximately 21,000 Bitcoin options will reach their expiration date. The put-call ratio for these options is 0.62, meaning there are more put (betting on a price decrease) than call (betting on a price increase) options. The Maxpain point, which represents the price level at which the majority of option contracts will be profitable, is set at around $69,000, and their total notional value amounts to $1.5 billion.
— Greeks.live (@GreeksLive) April 12, 2024
On the four-hour Bitcoin chart, the price doesn’t have enough energy to confirm an uptrend pattern called an ascending triangle. If this pattern breaks out, Bitcoin could rise by approximately 13.23% to reach $80,726. The blue line representing the 200-day moving average currently acts as a support level. With Bitcoin trading above the previous day’s opening price of $70,005, the market trend is bullish.
A bullish trend is probable given the solid foundation of the market’s fundamentals. However, it’s important to consider the possibility of a correction occurring before this uptrend gains momentum. Potential support and an opportunity for buyers to enter the market may be found around the 200-day moving average (represented by the purple line) or approximately $67,156 on the price chart.
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2024-04-12 16:00