Hong Kong’s Influence: Bitcoin’s Resurgence Amid Volatility

17 views 12:08 pm 0 Comments May 20, 2024

Illustration: Dado Ruvic (Reuters)

Following a nearly 10% decline over the weekend, Bitcoin experienced a resurgence on Monday following Hong Kong’s announcement of the approval of its inaugural spot Bitcoin and Ether exchange-traded funds (ETFs).

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The weekend’s downturn, coinciding with tensions between Israel and Iran, market volatility, and persistent inflation, resulted in Bitcoin dropping below \(62,000. However, by Monday morning, the cryptocurrency had rebounded, climbing 2.5% to reach \)66,000.

Hong Kong Embraces Crypto ETFs Market

Three Chinese asset managers based offshore, including the Hong Kong branches of Harvest Fund Management, Bosera Asset Management, and China Asset Management (ChinaAMC), are preparing to introduce their spot Bitcoin and Ether ETFs in the near future, as reported by Reuters on Monday.

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In contrast to mainland China, Hong Kong has consistently displayed a positive outlook on cryptocurrencies. This recent development indicates its intention to emulate the United States by delving into investments in crypto ETFs.

Bitcoin Halving Spurs Volatility

As the Bitcoin halving event approaches, volatility has surged within the Bitcoin and broader cryptocurrency markets. Scheduled for around April 19, the halving will halve the miner reward from 6.25 Bitcoin to 3.125 Bitcoin.

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On Monday morning, Ether, the second-largest cryptocurrency, recorded a 12% decrease week over week but showed a daily increase of over 5%, maintaining a value around \(3,100. Solana, priced at \)147, experienced an 18% decline from the previous week but saw a 7.8% rise on the day. Dogecoin underwent a decline exceeding 20% within a week, yet recovered on Monday with a 5% surge to $0.15.

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