📉 Cryptocurrencies resume dynamic downward movement
Ethereum is losing more than 5.5% today after spot ETFs in Hong Kong disappointed the expectations of some investors and did not prove to be a catalyst for growth. Additionally, sentiment on Wall Street remains weak, ahead of tomorrow's Fed meeting and Chairman Powell's speech. After the recent higher-than-forecast inflation data, investors are concerned that dollar strength and rising yields will put additional pressure on risky assets.
- Trading volume of spot funds for Bitcoin and Ethereum in Hong Kong totaled $11 million.
- Some asset managers at China Asset Management, among others, suggest that similar funds will also be established in mainland China, but this is impossible at this point due to regulations
- Bloomberg estimates that after two years of activity, spot funds will have bought up about $1 billion worth of BTC and ETH
- This does not seem to be enough demand, to significantly impact Bitcoin or Ether (the capitalization of both cryptocurrencies is about $1.2 trillion and $360 billion, respectively)
Risk aversion is putting some pressure on spot ETFs in the US, which have accumulated more than $12 billion worth of BTC in a few months. Yesterday, the funds recorded another week session, reducing the value of BTC by about $51 million and the main seller this time was not Grayscale. Inflows to BlackRock and Fidelity are proving to be minimal, although it can be seen as a positive that investors are practically not selling out of them, despite the 20% drop in BTC from ATH. Source: XTB Research, Bloomberg Finance LP
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile app
Ethereum breaks through the psychological barrier of $3,000 and thus records nearly 5.5% intraday declines. Source: xStation5
ETH's weakness is also felt by altcoins, which are losing sharply during today's session. Source: xStation5
The material on this page does not constitute as financial advice and does not take into account your level of understanding, investment objectives, financial situation or any other particular needs.
All the information provided, including opinions, market research, mathematical results and technical analyses published on the website or transmitted to you by other means is provided for information purposes only and should in no event be interpreted as an offer of, or solicitation for, a transaction in any financial instrument, nor should the information provided be construed as advice of legal or fiscal nature.
Any investment decisions you make shall be based exclusively on your level of understanding, investment objectives, financial situation or any other particular needs. Any decision to act on information published on the website or transmitted to you by other means is entirely at your own risk. You are solely responsible for such decisions.
If you are in doubt or are not sure that you understand a particular product, instrument, service, or transaction, you should seek professional or legal advice before trading.
Investing in OTC Derivatives carries a high degree of risk, as they are leveraged based products and often small movements in the market could lead to much larger movements in the value of your investment and this could work against you or for you. Please ensure that you fully understand the risks involved, taking into account your investments objectives and level of experience, before trading, and if necessary, seek independent advice.
