- Just $11 million worth of trading activity was produced by the six Bitcoin and Ether ETFs that made their market debut on Tuesday in Hong Kong.
- Despite the introduction of spot Ethereum and Bitcoin ETFs in Hong Kong on Tuesday, the cryptocurrency markets are still in free fall.
The largest cryptocurrency in the world, Bitcoin (BTC), is currently trading below $61,000, while Ethereum (ETH) is down 7% and trading at about $3,000. According to CoinGecko, the value of the worldwide cryptocurrency market has decreased by 4% to $2.35 trillion.
More than $300 million worth of leveraged holdings were liquidated on Tuesday morning, according to CoinGlass statistics.
Compared to expectations, the six ETFs that started trading in Hong Kong on Tuesday performed remarkably poorly. Significantly less than the expected $100 million, the overall trading volume was only $11 million. According to data from the Hong Kong Stock Exchange (HKEX), Ether ETFs provided the remaining amount, with Bitcoin ETFs accounting for $8.5 million of the total.
According to analysts, the launches fell short of the expectations.
Nearly twelve spot Bitcoin exchange-traded funds (ETFs) have begun trading in the United States since January 11 and have drawn around $12 billion in investor capital. The U.S. spot Bitcoin ETFs had a combined volume of $655 million on their debut day.
Spot ETFs give investors exposure to the underlying asset, in this case, Bitcoin, without forcing them to hold and manage their coins on a first-hand basis.
Economic news abounds this week as Fed policymakers convene for a two-day meeting.
The CEO and founder of MN Trading, Michael Van de Poppe, tweeted on X about the beginning of a significant macroeconomic week.
Anticipating further declines in Bitcoin, following which I believe the bottom will be reached in a week. He recommended to take liquidity of less than $61,000 and rotate back up from there.
Ahead of the Fed meeting, worries about inflation were heightened by higher-than-expected wage data, which sent stocks into a tailspin on Tuesday.
The Nasdaq Composite dropped 0.27%, the Dow Jones Industrial Average dropped 159 points, or 0.38%, and the S&P 500 dipped lower by 0.17%.
Crypto-related equities experienced a 10% decline, and shares of Coinbase (COIN) saw a 3% decline.
Bitfarms (BITF), Riot Platforms (RIOT), and Marathon Digital (MARA) are among the bitcoin mining stocks that saw losses on Tuesday ranging from 4% to 7%.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
