Key Points
- US markets see another risk-off wave, with Bitcoin dropping below $62.500 ahead of a slight reversal.
- Buying the weekend dip looked great in Asia, with Bitcoin surging back to almost $67k following Hong Kong’s ETF announcement.
- Bitcoin is three days ahead of its halving event.
The US markets saw a dip in price for Bitcoin, with the digital asset dropping below the important level of $62,500, down by approximately 9% in 24 hours. At the moment of writing this article, Bitcoin is trading a little above $62k right after the price bounced back to $63,300 on CoinMarketCap.
BTC is now down by 6% in the past 24 hours. Bitcoin’s volatility is significant at the moment.
We’re seeing a weakening of the upside momentum, which was previously triggered by Hong Kong’s announcement regarding the approval of the first batch of Bitcoin and Ethereum ETFs.
The other day, it was reported by Shanghai Reuters that Hong Kong’s securities regulator just approved the first spot of Bitcoin and Ethereum exchange-traded funds (ETFs).
The move marks an important milestone for Hong Kong on the path to becoming Asia’s first city to accept popular crypto products as a tool of mainstream investment.
This also triggered a surge in the price of Bitcoin following a sudden price dip over the weekend due to Iran’s attack. The market priced out the de-escalation of the Israeli-Iranian conflict.
Stocks and crypto at the edge of correction
Founder of 10x Research, Markus Thielen, said in a new note that the stock and crypto could be now ahead of a crucial tipping point. He explained that they could be headed for a significant price correction.
Thielen said that they sold everything last night, and he cited persistent inflation, decreasing rate cuts, and a rising bond yield as the main reasons behind the bearish outlook.
He also explained that the reason behind Bitcoin’s decline could be the dropping expectations for an incoming interest cut.
In his note, Thielen said that most of this 2023-2024 Bitcoin rally had been driven by the expectations that interest rates would see a significant cut, and this narrative is obviously being challenged now.
Traders are expecting rates to remain the same, according to the CME Group’s FedWatch. 99% of market participants expect the Federal Reserve to keep interest rates at the current 5.25%-5.50% numbers.
Thielen also explained that it is essential to understand that trading is a continuous game with high-conviction opportunities, and the key is to keep analyzing the markets and uncovering the best opportunities when the odds are optimistic.
We Sold Everything Last Night ->
👇1-11) Our growing concern is that risk assets (stocks and crypto) are teetering on the edge of a significant price correction (see yesterday’s report). The primary trigger is the unexpected and persistent inflation. With the bond market now… pic.twitter.com/EvHyvw1du5
— 10x Research (@10x_Research) April 16, 2024
Recently, Bitcoin also experienced another price dip recently, following the latest CPI reports, which were hotter than expected, showing an increased consumer price, which rose 3.5% from a year ago in March.
The result was higher than expected. Economists surveyed by Dow Jones had been looking for a 0.3% gain and a 3.4% year-over-year level. Following the announcement, Bitcoin failed to maintain the important level of $69k, but shortly recovered above $70k once more.
Bitcoin is now three days ahead of the halving event, which is scheduled to take place on April 20.