Bitcoin price continues to stay below $63,000 even after the opening of the US markets. It hit a low today at $61,765. Despite buyers weakening at higher levels, the support levels show promising resistance. However, the gradual lowering of resistance levels remains a significant barrier to an uptrend.
Hong Kong and Cryptocurrency
Last June, the autonomous administration that opened the door to individual investors for cryptocurrencies is now allowing the launch of ETFs. The anticipated price surge last year did not occur, and experts believe that Hong Kong ETFs will not bring the massive inflows as hoped.
Willy Woo, founder of Woobull, citing a 2022 report from cryptocurrency exchange Huobi, expects a significant increase in demand, contrary to most experts.
“In terms of user numbers, the Asian market is BIGGER than the combined markets of the US and Europe. Significant capital potential could lead to increased liquidity and possibly stabilize Bitcoin prices. It also has the potential to serve as a precedent for other Asian markets, influencing more regulatory changes in favor of crypto.”
House of Chimera wrote that due to regulatory restrictions, ETFs would face restrictive barriers in mainland China;
“Although the launch of Bitcoin ETFs in Hong Kong is a milestone, their success and broader market impact will largely depend on regulatory environments, investor sentiment, and macroeconomic factors that affect cryptocurrency valuations.”
When Will Bitcoin Rise?
It seems difficult for Hong Kong ETFs to deliver significant results amidst such complex macroeconomic conditions. It might be wise not to get too hopeful without seeing the volume data from the initial days. The main indicator to watch for Bitcoin’s price at this stage is the cost region of short-term investors.
STH realized price had served as a strong support during most periods including the lowest levels of the 2022 bear market. If the level corresponding to $58,000 is not maintained as support, we might find ourselves in the midst of a serious stagnant, negative period lasting several months.
