Bitcoin’s value dropped below the $61,000 threshold following the launch of the first spot Bitcoin exchange-traded funds (ETFs) in Hong Kong. There is speculation about whether Bitcoin will dip below $60,000 in the coming days.
On April 30, Bitcoin reached a low of $60,543, just one day after the launch of the initial batch of spot Bitcoin ETFs in Hong Kong. According to CoinMarketCap, the world’s first cryptocurrency has experienced a 7.3% decline on a weekly basis and a 13% decline on a monthly basis.
Despite being a significant figure for the Hong Kong market, the ETFs only garnered $12.4 million in trading volume on their first day. In comparison, the first-day trading volume of US spot Bitcoin ETFs amounted to $4.6 billion. Bloomberg ETF analyst Eric Balchunas stated that this is still a notable amount, equivalent to $1.6 billion in trading volume in the United States.
During the first day, approximately 14% of the $12.4 million daily trading volume was attributed to spot Ether ETFs, while the remaining 86% flowed into Bitcoin-based ETFs.
The drop in Bitcoin’s price following the launch of the Hong Kong ETFs is seen as a typical “sell-the-news” occurrence by Mehdi Lebbar, co-founder of risk assessment platform Exponential.fi.
In the United States, the weekly net flows for Bitcoin ETFs remain negative. This week, the ten Bitcoin ETFs saw negative net outflows totaling over $257 million, compared to over $396 million in negative outflows the previous week, as per Dune data.
US-based ETFs played a significant role in Bitcoin’s price increase in 2024. By February 15, Bitcoin ETFs accounted for approximately 75% of new investments in the largest cryptocurrency when it surpassed the $50,000 mark, according to CryptoQuant research.
Ben Caselin, CMO of VALR exchange, believes that Bitcoin’s downward trend in recent weeks may cause it to fall below the $60,000 mark. However, this could present a buying opportunity for long-term holders, following patterns observed after previous post-halving rallies, according to Lebbar.
If Bitcoin’s price were to fall below $60,000, over $306 million worth of cumulative leveraged long positions would be liquidated across all exchanges, according to Coinglass.
Traders should closely monitor the $60,000 support level this week, as well as the $51,000 level, according to Matt Bell, CEO of open-source software firm Turbofish.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and consider the risks involved before making any investment or trading decisions.