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Bitcoin ETF

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Bitcoin's (<a href="https://cointelegraph.com/bitcoin-price" rel="noopener noreferrer nofollow">BTC</a>) price fell below the $61,000 mark after the first spot Bitcoin exchange-traded funds (ETFs) went live in Hong Kong. Is Bitcoin at risk of going below $60,000 in the next few days?
<h2 id="btc-price-falls-below-61k-as-hong-kong-etf-launches">BTC price falls below $61K as Hong Kong ETF launches</h2>
Bitcoin fell to a weekly low of $60,543 on April 30, a day after the launch of the first batch of <a href="https://cointelegraph.com/news/hong-kong-bitcoin-ether-etfs-start-trading-april-30" rel="noopener noreferrer nofollow">spot Bitcoin ETFs in Hong Kong</a>. The world’s first cryptocurrency is down over 7.3% on the weekly and 13% on the monthly chart, according to <a href="https://coinmarketcap.com/currencies/bitcoin/" target="_blank" rel="noopener noreferrer nofollow">CoinMarketCap</a>.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-04/8e473429-0a41-4bee-92d5-31787f93ae74.png">
 <figcaption style="text-align: center;">BTC/USDT 1-day chart. Source: <a href="https://coinmarketcap.com/currencies/bitcoin/" target="_blank" rel="noopener noreferrer nofollow">CoinMarketCap</a>
 </figcaption>
</figure>
The <a href="https://cointelegraph.com/news/hong-kong-bitcoin-eth-etfs-12m-first-day-trading" rel="noopener noreferrer nofollow">Hong Kong-based ETFs</a> only amassed $12.4 million in trading volume during the first day, which pales compared to the first-day trading volume of U.S. spot Bitcoin ETFs, valued at $4.6 billion.
However, this is a high figure considering the size of the Hong Kong market, equivalent to $1.6 billion worth of trading volume in the United States, according to senior Bloomberg ETF analyst Eric Balchunas.
Balchunas wrote in an April 30 X <a href="https://twitter.com/EricBalchunas/status/1785282088242950326" target="_blank" rel="noopener noreferrer nofollow">post</a>:
<blockquote>
 “You have to understand [that Hong Kong] is 1/168th the size of the U.S… That said, Hong Kong ETFs launched at a good time as the U.S. is slowing, so their $141m+ in inflows going to more than offset slightly negative U.S. flows.”
</blockquote>
<figure><img src="https://s3.cointelegraph.com/uploads/2024-04/01922308-79ec-4c1b-ba82-923e1eb43b15.png">
 <figcaption style="text-align: center;">Hong Kong ETF flows, launch day. Source: <a href="https://twitter.com/EricBalchunas/status/1785282088242950326" target="_blank" rel="noopener noreferrer nofollow">Eric Balchunas</a>
 </figcaption>
</figure>
Approximately 14% of the $12.4 million daily trading volume was captured by spot Ether ETFs in Hong Kong with 86% flowing into Bitcoin-based ETFs.
<h2 id="bitcoin-etf-news-gets-absorbed">Bitcoin ETF news "gets absorbed"</h2>
Bitcoin’s price drop after the debut of Hong Kong ETFs is a typical "sell-the-news" event, according to Mehdi Lebbar, the co-founder of institutional-grade risk assessment platform Exponential.fi. He told Cointelegraph:
<blockquote>
 “Market participants often anticipate these events, leading to a price surge prior to the actual news, and subsequently take profits once the news is public. This pattern suggests a tactical response from short-term traders to capitalize on the hype, followed by a correction as the news gets absorbed.”
</blockquote>
Over in the United States, weekly Bitcoin ETF net flows remain negative. The ten Bitcoin ETFs saw over $257 million worth of negative net outflows this week, down from over $396 million in negative outflows during the previous week, according to <a href="https://dune.com/hildobby/btc-etfs" target="_blank" rel="noopener noreferrer nofollow">Dune</a> data.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-04/6f0010c7-23ee-4400-a631-204393e1df6f.png">
 <figcaption style="text-align: center;">Bitcoin ETF Net Flows. Source: <a href="https://dune.com/hildobby/btc-etfs" target="_blank" rel="noopener noreferrer nofollow">Dune</a>
 </figcaption>
</figure>
The U.S.-based ETFs were a significant part of Bitcoin’s price appreciation in 2024. By Feb. 15, <a href="https://cointelegraph.com/news/bitcoin-etfs-about-75-new-investment" rel="noopener noreferrer nofollow">Bitcoin ETFs accounted for about 75%</a> of new investment in the world’s largest cryptocurrency as it surpassed the $50,000 mark, according to CryptoQuant research.
Related: <a href="https://cointelegraph.com/news/bitcoin-outpeforms-tesla-stock-first-time-since-2019" rel="noopener noreferrer nofollow">Bitcoin outperforms Tesla stock for the first time since 2019</a>
<h2 id="more-downside-ahead-for-bitcoin">More downside ahead for Bitcoin?</h2>
Bitcoin was already on a downward trend over the previous weeks, which could see it fall below the $60,000 mark, according to Ben Caselin, the CMO of VALR exchange. He told Cointelegraph:
<blockquote>
 “Bitcoin could certainly descend below $60,000 and could certainly see resistance for a few weeks, but ultimately the effects of the Halving will kick in and so most long-term holders of Bitcoin would take this period of time as an opportunity.”
</blockquote>
While Bitcoin may indeed fall below the $60,000 psychological mark, it could present a good buying opportunity for long-term holders, in line with corrections from previous post-halving rallies, according to Lebbar, the co-founder Exponential.fi:
<blockquote>
 “If Bitcoin's price goes below this mark, it may further slide towards the $52,000 support level. This support could present a significant buying opportunity, especially since long-term investors often benefit from acquiring during such dips.”
</blockquote>
Over $306 million worth of cumulative leveraged long positions would be liquidated across all exchanges if Bitcoin's price fell below $60,000, according to <a href="https://www.coinglass.com/pro/futures/LiquidationMap" target="_blank" rel="noopener noreferrer nofollow">Coinglass</a>.
<figure><img src="https://s3.cointelegraph.com/uploads/2024-04/b1751cee-956c-48a3-a601-c48c7ac76601.png">
 <figcaption style="text-align: center;">Bitcoin Exchange Liquidation Map. Source: <a href="https://www.coinglass.com/pro/futures/LiquidationMap" target="_blank" rel="noopener noreferrer nofollow">Coinglass</a>
 </figcaption>
</figure>
As Cointelegraph <a href="https://cointelegraph.com/news/bitcoin-sub-60k-after-daily-crypto-liquidations-near-300m" rel="noopener noreferrer nofollow">reported</a> the key levels to watch will be around $60,000 and $51,000.
Traders should keep a close eye on the key $60,000 support level this week, according to Matt Bell, the CEO of open-source software firmTurbofish. He wrote:
<blockquote>
 “Key levels this week include psychological supports like $60,000 and resistances like $65,000 while monitoring sentiment, institutional activity, and macro factors adds context.”
</blockquote>
Related: <a href="https://cointelegraph.com/news/china-hong-kong-bitcoin-etfs-halving-btc-price-rally" rel="noopener noreferrer nofollow">'China is about to start bidding' — Will Hong Kong Bitcoin ETFs spark the halving rally?</a>
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin sells the news on Hong Kong ETF debut — Will BTC hold $60K?

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