Ethereum and Bitcoin slumps as Hong Kong spot ETFs debut disappoints investors 📉

The largest of the cryptocurrencies Bitcoin loses more than 3% today and retreats to $61,000, while the largest of the 'altcoins, Ethereum, records a 5% decline, testing important psychologically $3000 zone. We can tie such a reaction in part to disappointing data on the purchase of spot ETFs, which began trading today on the Hong Kong exchange.

• Regulators agreed to allow trading in spot funds tracking Bitcoin and Ether prices, but investor interest turned out to be far lower than expected.  A total of 6 permitted ETFs saw a volume of only $11 million (BTC accounted for $8.5 million of trading) after trading began on the Hong Kong exchange.

• Some estimates spoke of as much as $100 million on the first day. In comparison, ETFs in the US recorded $655 million in cumulative volume on the first day. But interest in them has also dropped noticeably in recent weeks, putting a question mark over the momentum of the entire cryptocurrency market.

Ethereum chart (D1)

The ETH price reacted with strong downward pressure near the 23.6 Fibonacci retracement of the upward wave from the fall of 2022, and a renewed downward movement could suggest pressure for a retest of the area around the 38.2 Fibo retracement, at $2800.Source: xStation5