Hong Kong Recognises Bitcoin and Ethereum as Valid Proofs of Assets for Investment Immigration

By accepting Bitcoin and Ethereum for investment, Hong Kong not only legitimises these digital currencies but also potentially stimulates demand from investors seeking alternative avenues.

Hong Kong has announced that Bitcoin and Ethereum will be accepted as valid proofs of assets for investment immigration under the New Capital Investment Entrant Scheme. Following the announcement, Bitcoin (BTC) and Ethereum (ETH) price both surged over 4% within an hour. BTC price rose to $56,789 and ETH price reached $3,210. Both cryptocurrencies also saw a surge in trading volume. BTC/USD on Binance soared to $1.2 billion, up 300% from the previous hour. Meanwhile, ETH/USD on Coinbase jumped from $150 million to $450 million. The announcement sparked a surge in trading and speculative activity in response to the news.

The new policy will have implications for trading strategies within the cryptocurrency sphere. By accepting Bitcoin and Ethereum for investment, Hong Kong not only legitimises these digital currencies but also potentially stimulates demand from investors seeking alternative avenues. BTC/HKD trading pair on OKEx saw a 6.2% increase, reaching $58,123, while ETH/HKD rose by 5.9% to $3,390.

On-chain metrics also support this trend. Active Bitcoin addresses rose by 10% to 850,000, and Ethereum addresses increased by 7% to 600,000 within 24 hours of the announcement. These surges indicate an increase in trading and holding activities, which traders should monitor for potential entry and exit points.

From a technical analysis perspective, BTC price broke through its resistance level of $55,000 shortly after noon, with the Relative Strength Index (RSI) indicating strong bullish momentum at 72. Similarly, ETH price’s hourly chart displayed a breakout above the $3,100 resistance level, with its RSI reaching 68. Throughout the day, trading volumes remained robust, with BTC/USD on Binance exceeding $1 billion and ETH/USD on Coinbase staying above $400 million until market close. These technical indicators suggest that while a short-term correction may be possible, further upward movements could occur if bullish sentiment persists.

The announcement also had a positive impact on AI-focused cryptocurrencies. By 2pm UTC, tokens like SingularityNET (AGIX) and Fetch.AI (FET) surged both surged over 4%. The trading volume for AGIX/BTC on KuCoin soared by 250% to $25 million, while FET/BTC volume increased by 200% to $20 million. This correlation suggests that AI-driven trading algorithms capitalised on the market sentiment shift sparked by Hong Kong’s announcement. Moreover, sentiment analysis revealed a 15% increase in positive mentions of AI and cryptocurrency on social media platforms, indicating a broader impact on market sentiment. Traders should keep a close eye on these AI-related tokens, as they may present further profit opportunities following this significant regulatory change.