BTC & ETH ETFs in Hong Kong, and the crypto market, facing pressure -

Farside Investors reported that the total AUM (assets under management) for Bitcoin ETFs trading on the Hong Kong stock market in the first week was 262 million USD, significantly lower than the first-week AUM for Bitcoin ETFs in the United States. Meanwhile, Ethereum ETFs had an AUM of just 54.2 million USD. Analysts at Bloomberg believe that Bitcoin ETFs in Hong Kong may not reach the same AUM levels as those in the U.S. stock market.

Data from Farside Investors revealed that GBTC (Grayscale Bitcoin Trust ETF) had a net daily inflow of 63 million USD on Friday (May 3), marking the first positive net inflow since trading began in January. Since its launch, GBTC has experienced net outflows of 17,461 million USD, causing its AUM to drop by more than half since the fund’s inception.

Bloomberg reports that the Australian Securities Exchange (ASX) plans to approve the establishment of a Spot Bitcoin ETF by the end of 2024. At least two firms, Van Eck Associates Corporation and BetaShares Holdings Pty, are preparing to apply for the establishment of these funds

Jack Dorsey, co-founder of Twitter, announced that Block, the company he co-founded, will use 10% of profits related to Bitcoin transactions—such as Bitcoin trading on Cash App—to purchase Bitcoin each month. Currently, Block holds 8,038 BTC, with a total value of about 573 million USD.

Michael Saylor predicts that the US SEC will not approve the establishment of Spot Ethereum ETFs, categorizing Ethereum as a security rather than a commodity. He suggests that other cryptocurrencies could also be classified as securities.

The United States District Court for the Western District of Washington sentenced Changpeng Zhao (CZ), the founder of Binance, to four months in prison for financial law violations. This sentence is significantly shorter than the 36-month prison term requested by the prosecution.

Weekly Technical Analysis: 7 – 13 May 2024

Bitcoin (BTC)

BTC has made a sharp V-shaped recovery, reaching the resistance level of 2,400,000 THB, but has not yet broken through. It could drop to test the first support at 2,280,000 THB. If it fails to hold, there may be a possible fall to test the 2,200,000 THB level. However, if it manages to stay above 2,400,000 THB consistently, the next resistance target would be at 2,500,000 THB.

Support 2,200,000 THB Resistance 2,500,000 THB

Support 60,000 USD Resistance 67,000 USD

ETH has made a strong recovery, but if it fails to break through the resistance level at 122,000 THB, the price could continue to drop. If it falls below the previous low of 104,000 THB, the trend may turn bearish.

Support 104,000 THB Resistance 122,000 THB

Support 2,700 USD Resistance 3,400 USD

Worldcoin (WLD)

WLD rose by 34.95% over the past week, indicating a reversal into an upward trend. However, with this rapid increase, there’s also a risk of a significant pullback. Keep an eye on the support level at 190 THB, which could serve as a buying opportunity, with a target to take profits at the resistance level of 260 THB.

Support 5.16 USD Resistance 7.06 USD

Pepe (PEPE)

PEPE increased by 26.57% over the past week. The recommended trading strategy is to “buy on dip.” Watch the initial support at 0.00028 THB. If it doesn’t hold, consider selling to cut losses. If it holds, the price may rise to test the resistance at 0.00036 THB. Given the high volatility, it’s crucial to monitor price movements closely.

Support 0.0000076 USD Resistance 0.0000098 USD

Trading and Investment Considerations For The Week

The Non-Farm Payroll numbers came out significantly lower than expected, along with a higher unemployment rate, causing the U.S. dollar to weaken. This led to a surge in Bitcoin prices, pushing them back above 60,000 USD, as well as boosting other types of risky assets.

At the same time, GBTC is showing stronger buying momentum, with its net inflows turning positive for the first time since launching as an ETF in January. These two factors are positive news for Bitcoin prices in the short term. However, to support a long-term recovery, other economic data needs to point towards the US Federal Reserve considering interest rate cuts.

Other perspectives for May indicate that Bitcoin and the crypto market will likely continue to move sideways until new positive factors emerge. An area to watch is the resurgence of issues among smaller U.S. banks, which could be a pivotal point in the current upward market trend. If these problems become significant, they could propel Bitcoin to new heights.

Consider a trading strategy based on short-term profit-taking with a clear stop-loss point. If Bitcoin’s price drops below 56,000 USD, it’s best to delay investing, as it could fall to test the 52,000 USD level. However, if it stays above 67,000 USD consistently, it could signal a recovery in the crypto market.

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Disclaimers

Cryptocurrencies and digital token are highly risky; investors may lose all investment money. Investors should study information carefully and make investments according to their own risk profile.
Past returns or performance of digital assets do not guarantee future returns or performance.

Remark: views, information, knowledge and opinions are considered as contents that come from individuals involved. They do not constitute an expression of Bitazza and its employees. Neither email nor content presented constitutes the investment advice.

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