Key Points
- Bitcoin’s recent decline mirrors its behavior after the U.S ETF launch, suggesting a possible upswing soon.
- The launch of Bitcoin ETFs in Hong Kong has seen $217 million in net inflows since April 30.
After the introduction of spot Bitcoin exchange-traded funds (ETFs) in Hong Kong on April 30, Bitcoin’s value has dropped by nearly 7%.
This trend is reminiscent of the aftermath of the United States ETF launch in January. Following that event, Bitcoin’s price fell 14% within 12 days, but then increased by 7% over the next week.
Similarities and Differences in Bitcoin ETF Launches
Crypto trader Quinten Francois suggests that if Bitcoin continues to follow this trend, it could see an increase in the near future. He believes that price corrections are a necessary part of the process.
However, there are significant differences between the two ETF launches. The Hong Kong launch saw net inflows of $217 million, while the U.S. ETFs experienced $794 million in outflows over the same period.
The trading volume on the first day of the Hong Kong-based ETFs was also significantly lower, at $12.4 million, compared to the $4.6 billion first-day trading volume of the U.S. spot Bitcoin ETFs.
Market Reactions and Predictions
Despite these differences, some traders are optimistic. Bloomberg ETF analyst Eric Balchunas argues that the inflows from Hong Kong are impressive considering its size relative to the U.S.
However, some are concerned that the inflows from Hong Kong may not be enough to counterbalance the recent outflows from the U.S., potentially preventing a similar breakout pattern.
Others believe that the recent price decline is a healthy market correction. Crypto trader Titan of Crypto suggests that the longer the Bitcoin consolidation takes, the higher its price will meet the trendline.
Crypto commentator CryptoCon agrees, stating that Bitcoin’s most recent correction was much needed for its future price. Meanwhile, founder of AirBtc Handre van Heerden emphasizes that Bitcoin enthusiasts are unfazed by price drops.
In other news, the launch of Bitcoin ETFs in Hong Kong is considered among the ‘top 20%’, and a suspect involved in the STRK scam has been apprehended.
