Hong Kong to Greenlight Spot Bitcoin, Ethereum ETFs, Boosting Market Sentiment

Spot Bitcoin and Ethereum exchange-traded funds (ETFs) are reportedly imminent in Hong Kong. Amidst these rumors and an impending Bitcoin halving event, Bitcoin and Ethereum prices are rallying after a significant weekend sell-off triggered by Iran's strikes on Israeli territory. Bitcoin is attempting to recover above the 20- and 50-day moving averages, while Ethereum targets key resistance levels after reclaiming support at $3,000.

Hong Kong poised to approve spot Bitcoin and Ethereum ETFs, fueling market optimism

April 15, 2024

In a groundbreaking development for the cryptocurrency industry, sources close to the Hong Kong Securities and Exchange Commission (HK SEC) have revealed that multiple applicants have received the green light to launch spot Bitcoin (BTC) and Ethereum (ETH) exchange-traded funds (ETFs). This imminent approval marks a significant milestone in the institutional adoption and mainstream recognition of digital assets.

Among the approved applicants, China Asset Management (HK) Ltd. has officially announced its plans to launch spot Bitcoin and Ethereum ETFs. The company's website hosts a public announcement detailing its partnership with various entities to facilitate this groundbreaking initiative.

Bitcoin halving event looms on the horizon

While the impending ETF approvals dominate headlines this week, the Bitcoin halving event is poised to take center stage later this week. As per the latest mining data, only 683 blocks remain to be mined before the mining reward is slashed by 50%. Market analysts anticipate the halving event to occur early morning on Saturday, April 20th.

Weekend sell-off prompts price rebound

The cryptocurrency market experienced a turbulent weekend following a series of strikes by Iran against Israeli territory. The attack, a retaliation for Israel's strike on Iran's consulate in Syria, involved over 350 drones and missiles launched by Iran. The Israel Defence Force (IDF) reported that "99%" of these "threats" were successfully intercepted.

Given that the cryptocurrency sector operates 24/7, traders sought to mitigate risk by utilizing its liquidity during the weekend. Bitcoin plunged to a low of $60.6k while Ethereum reached a multi-week low of $2,845. The altcoin space witnessed losses of 25% or more, triggering numerous liquidation events.

Today's market action has seen prices rebound across the board, but the weekend's losses will require time to fully recover.

Technical analysis: Bitcoin and Ethereum

Bitcoin's weekend sell-off pushed the asset below both its 20- and 50-day simple moving averages (SMAs) for the first time since late January. These levels must be convincingly reclaimed, along with the prior resistance-turned-support level at $69k, before Bitcoin can attempt a fresh challenge of its mid-March all-time high of $73.78k.

Ethereum has gained over 3% today after reaching a multi-month low of $2,845 on Saturday. To regain momentum, Ethereum must reclaim its 20- and 50-day moving averages before the $3,582 resistance level comes into play. Surmounting this barrier would pave the way for a test of the April 8th/9th double high at $3,728.

Bullish or bearish?

The impending spot Bitcoin and Ethereum ETF approvals in Hong Kong, coupled with the highly anticipated Bitcoin halving event, has instilled a sense of optimism in the market. While the weekend sell-off raised concerns, today's price recovery suggests that buyers are stepping back into the ring.

The technical outlook for both Bitcoin and Ethereum provides key levels to watch. A sustained break above these levels could signal a continuation of the bullish trend, while a failure to do so may indicate a potential bearish reversal.

As the week unfolds, investors and analysts will be closely monitoring the developments surrounding spot Bitcoin and Ethereum ETFs and the impact of the Bitcoin halving event on the cryptocurrency markets.