The new Hong Kong spot Bitcoin (BTC) exchange-traded fund (ETFs) seemed to disappoint with its initial volume. Following the emergence of low volume and lack of excitement, the cryptocurrency market also began to decline. Shortly after this process, the BTC price also fell to the $61,000 level, presenting a poor image.
Hong Kong ETF Current Status
According to a post by crypto market analyst WhaleWire on April 30, on the first day of trading for Bitcoin and Ethereum (ETH) ETFs in Hong Kong, the market fell well below expectations, generating only $11 million in combined trading volume, far below the potential target of $125 million.
WhaleWire’s mention of “fabricated and non-existent” institutional demand paralleled the view that recent increases in Bitcoin prices were a result of Tether’s (USDT) “record inflow of money into the markets.”
Disastrous Outlook for Bitcoin
On the other hand, according to a report published by Collective Shift’s senior analyst Nicholas Sciberras on April 22, despite Bitcoin’s (BTC) recent surprising rise, he pointed out that peaks are possible, but “disastrous falls are also possible.”
He further stated:
The theory exists that the four-year halving event is not as significant as many think, and instead, its alignment with external liquidity cycles appears to be a trigger for upward price movements.
Sciberras also noted that the block reward will continue to decrease after each forthcoming halving. He expressed concerns about Bitcoin’s long-term security, stating that short-term selling pressure and spam clogging the ‘scripts’ among developers were nothing more than a nuisance.
If Bitcoin continues to be targeted by governments and energy consumption becomes more politicized, this could pressure Bitcoin’s long-term sustainability. If adoption and demand for Bitcoin remain insufficient or if fee revenues fail to incentivize miners to upgrade their equipment and mine new Bitcoins, security could decrease and threaten the network.
Meanwhile, the price of Bitcoin continued to fall. At the time of writing, Bitcoin was trading at $60,819 after a 5% drop.
