A Fresh Perspective on the New Bitcoin ETF in Hong Kong
The introduction of the Bitcoin exchange-traded fund (ETF) in Hong Kong has left many disappointed due to its lackluster initial volume. This underwhelming start has had a ripple effect on the cryptocurrency market, leading to a decline in overall excitement. As a result, the price of Bitcoin has plummeted to a disappointing $61,000 level, tarnishing its image.
Current Status of the Hong Kong ETF
On April 30, crypto market analyst WhaleWire revealed that the first day of trading for the Bitcoin and Ethereum (ETH) ETFs in Hong Kong fell far below expectations. The combined trading volume amounted to a mere $11 million, a far cry from the projected target of $125 million.
WhaleWire went on to describe the institutional demand as “fabricated and non-existent,” suggesting that the recent surge in Bitcoin prices was a result of Tether’s (USDT) influx of money into the markets.
A Gloomy Outlook for Bitcoin
Contrary to the recent surprising rise in Bitcoin’s value, senior analyst Nicholas Sciberras from Collective Shift published a report on April 22 highlighting the potential for both peaks and disastrous falls in the cryptocurrency’s future.
Sciberras expressed concerns about the decreasing block reward after each halving, raising doubts about Bitcoin’s long-term security. He also mentioned the inconvenience caused by short-term selling pressure and spam clutters in developers’ scripts.
As the price of Bitcoin continued to decline, it currently stands at $60,819 after a 5% drop.
Disclaimer:
The information provided in this article should not be considered as investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and should conduct their own research.