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After hitting low levels over the weekend, Bitcoin price climbed above $66,830 on Monday. Experts primarily attribute this movement to the new spot ETF approvals in Hong Kong. The greenlighting of ETFs in Asia’s financial hub is seen as a confirmation that other jurisdictions will intentionally move in a similar direction.
Bitcoin and the ETF Influence
However, the impact of the listed ETFs in Hong Kong was short-lived, and Bitcoin continued its losing streak from the weekend on Tuesday. The leading cryptocurrency reversed its accrued gains and moved non-existent liquidity to $61,650. A 5.5% correction over the last 24 hours placed the Bitcoin price at $62,615. According to data from 21milyon.com, the cryptocurrency’s trading volume increased by 5.5% to $45 billion, while the market value of $1.2 trillion reflected a 5.24% decline, indicating selling pressure.
According to most blockchain analytics firms, including CoinGecko, the Bitcoin halving is expected around April 20. Only 21 million BTC will be available, and maintaining asset scarcity to control inflation is crucial. The halving reduces the number of cryptocurrencies miners receive as rewards for processing transactions and securing the network, while continuously introducing new cryptocurrencies into the market. Bitcoin is programmed to halve every 210,000 blocks, approximately every four years, with miner rewards starting at 50 BTC and dropping to only 3.125 by the end of this week.
Impact of Bitcoin Halving
In addition to controlling inflation, halving also acts as a catalyst in the market. Bitcoin prices tend to recover shortly after a halving, but most importantly, a bull run follows a few months later due to supply shortages and increasing BTC demand among investors (both individual and institutional). This halving is expected to be unlike any other due to the exponential increase in demand following ETF approvals in the US and Hong Kong on Monday.
Therefore, if investors maintain a long-term outlook on the market rather than just focusing on the halving day, buying during the current downturn could still be valid. However, those interested in short-term price movements should analyze the market and consider the current geopolitical tensions in West Asia, which saw Bitcoin prices retesting $60,000 last weekend.
