- Bitcoin’s price fell below analysts’ expectations as new cryptocurrency ETFs in Hong Kong fail to generate significant demand.
- The price of bitcoin fell to $62,000 on April 30, 2024, down from its recent peak of $68,000 in mid-April.
- Most analysts remain bullish on bitcoin’s long-term prospects despite its recent stumble.
Bitcoin’s price fell below analysts’ expectations as new cryptocurrency ETFs in Hong Kong fail to generate significant demand. This article examines the latest price moves in the crypto markets.
Price Action
The price of bitcoin fell to $62,000 on April 30, 2024, down from its recent peak of $68,000 in mid-April. The drop came as investors were let down by the debut of bitcoin-linked exchange-traded funds (ETFs) in Hong Kong. The new ETFs failed to meet high expectations for heavy trading volume.
Ether, the second-largest cryptocurrency by market capitalization, also slid on Tuesday. It changed hands near $4,100, representing a roughly 4% drop on a 24-hour basis. Other major altcoins like solana, cardano and polkadot traded lower.
Market Drivers
The disappointing launch of the new bitcoin ETFs in Hong Kong appears to be the primary driver of the latest crypto market downturn.
“The market had really pinned hopes on a strong reception for these products as a sign of broader institutional interest, but volumes have been quite tepid so far,” said Juan Perez, director of trading at Monex Europe.
Slowing economic growth around the world may also be contributing to investors’ risk-off attitude.
Analyst Commentary
Most analysts remain bullish on bitcoin’s long-term prospects despite its recent stumble.
“I think we’re still early in bitcoin’s adoption curve,” said Katie Talati, head of research at Arca Funds. “This year has already seen major milestones like the first spot bitcoin ETF in the U.S. and now ETFs launching in Asia. I’d expect more volatility in the near-term, but see prices heading higher by year-end.”
Conclusion
Bitcoin pulled back this week after optimism for new cryptocurrency ETF products in Hong Kong failed to generate heavy investor demand. Some slowing in global economic growth may have also spooked traders. But most industry analysts still have a constructive long-term view and predict prices will recover later this year.
