Key Points
- Bitcoin (BTC) experiences a significant drop, losing its $61,000 support.
- Hong Kong’s new Bitcoin ETFs trading volumes fall below expectations.
Bitcoin Drops to Two-Week Lows
Bitcoin (BTC) experienced a significant drop around the April 30 Wall Street open. This came as a disappointment after the introduction of new spot price exchange-traded funds (ETFs).
Data tracked a sharp drop in BTC/USD after the Asia trading session, leading to the loss of $61,000 support. The crypto market quickly reacted, with liquidations totaling $275 million over 24 hours.
Hong Kong’s New Bitcoin ETFs Underperform
The mood turned firmly bearish as it was revealed that the first day’s trading volumes for Hong Kong’s new Bitcoin ETFs had fallen considerably below expectations. Despite managing $12.4 million in trades, the numbers were still below anticipated levels.
Bloomberg Intelligence analyst Eric Balchunas gave a positive impression of the first day’s performance. However, he noted that the timing of the Hong Kong launch would contribute to overall spot ETF flows at a time when U.S. volumes had turned slightly negative.
The latest data showed four straight days of net outflows for the U.S. ETFs through April 29. As the BTC price weakness continues, market participants are looking at both $60,000 and the ground immediately below for potential reversal.
Concerns Over Bitcoin Futures Shorting
Co-founders of on-chain analytics firm Glassnode, Yann Allemann and Jan Happel, argued that the 50-day EMA stands as potential support, while the $60k level seems like a robust bottom for the current consolidation range. However, they warned that a breach of the $60k support may lead to further stability at the $52k level.
Trader Axel Adler added that Bitcoin futures were being shorted, casting doubt on nearby support.