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Bitcoin still in consolidation. Cryptocurrencies are waiting for ETFs listed in Hong Kong

Bitcoin still in consolidation. Cryptocurrencies are waiting for ETFs listed in Hong Kong

created Daniel KosteckiApril 26 2024

Bitcoin price is still in a sideways trend since the first half of March. This means that the sixth week of consolidation is currently underway, which is not yet the longest duration of the sideways trend in the entire recent bull market, which began after fall of FTX in November 2022

The price of the most expensive cryptocurrency in consolidation

The last consolidations on the bitcoin market lasted 7 or even 9 weeks, and if we add up the events from April to September 2023, then the consolidation lasted a total of 22 weeks. Therefore, while the current price pullback can be considered an average correction on the bitcoin market, in another week or up to two weeks, the bitcoin price may expand its consolidation.

It seems that the key levels for BTC, it is currently USD 59000 from below, and from above it is around USD 73000. From this perspective, the market may develop a trend after crossing one of these barriers at the turn of April/May or in the first half of May.

From the point of view of Bitcoin ETFs, inflows have probably slowed down due to the decelerating growth of the Bitcoin price. In other words, the price increase may have driven the inflows rather than the inflows driving the price increase, although there was a positive feedback there. Currently, it does not function due to consolidation. On April 24 and 25, there were even larger outflows, including traditionally from the Grayscale fund, which totaled almost USD 340 million.

On average, since the launch of the ETFs, the inflow has amounted to USD 165 million per day, and in total they have accumulated bitcoins worth USD 12 billion, after taking into account the USD 17 billion outflow from Grayscale.

The first BTC and ETH ETF in Asia

From the point of view of ETFs, an important event for the market may be the launch of funds in Hong Kong, which is scheduled to take place on April 30. The Hong Kong-listed bitcoin and ether ETF is set to be the first in Asia to accept cryptocurrency products as a primary investment vehicle, and the products have also received official regulatory approval from the Securities and Futures Commission, according to the market watchdog's website. Hong Kong, Reuters reported.

The companies responsible for trading the ETFs will be China Asset Management, Harvest Fund Management and Bosera Asset Management, the latter of which will operate in cooperation with local cryptocurrency company Hashkey. Perhaps this event will help BTC break out of consolidation in May.

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About the Author
Daniel Kostecki
Chief Analyst of CMC Markets Polska. Privately on the capital market since 2007, and on the Forex market since 2010.