On Monday, the Hong Kong Securities and Futures Commission (SFC) bitcoin–ethereum-etfs-approved-hong-kong/” rel=”nofollow noopener” target=”_blank”>announced that it had approved several bitcoin and ethereum spot ETFs to negotiate. This decision has been a long time in the making and was expected by everyone in the crypto community. As expected, the announcement turned out to be bullish for the market, driving a notable recovery in cryptocurrency prices across the space.
bitcoin rebounds towards $67,000
Over the weekend, the cryptocurrency market experienced a crash that brought the price of bitcoin back below $60,000. This event was due in part to Iran's move toward Israel, and many anticipated it to be the beginning of World War III. However, both sides have since backed down, giving markets time to recover.
In the midst of this recovery came the announcement from the Hong Kong SFC, which has given the market a much-needed boost. bitcoin price had been trending around the $64,000 line after the ceasefire, and the announcement boosted it further.
One of the reasons the Hong Kong SFC approved trading of bitcoin and ethereum spot ETFs in the space is due to the success of bitcoin spot ETFs in the United States. As institutional investors accumulated btc to support investments in their funds, the price of bitcoin rose rapidly along with it.
Likewise, as Chinese investors gain access to bitcoin and ethereum spot ETFs, a lot of buying is expected to occur as the funds have to hold the underlying cryptocurrencies to support the investment. In this way, more purchases are expected to occur in the coming weeks.
Can btc recover $70,000?
Despite the weekend's rally, there is still a lot of optimism in the market, showing that cryptocurrency investors believe the drop was an opportunity to buy again. The price of bitcoin, which is already up more than 3% to over $66,000 in the last day alone, proves this. be the case.
Additionally, bitcoin Spot ETF issuers continue to purchase the asset, increasing their AuM to over 4.7% of the total btc supply. As Hong Kong funds join the race, the share of btc supply owned by institutional investors is expected to grow rapidly, and this competition to buy the asset could lead to a reduction in supply.
In the event of a reduction in supply, bitcoin price could rise quickly to reclaim the $70,000 level once again, which is a move of less than 5% from here. Then, to reach a new all-time high, btc would have to move around 12%, something that has proven easy to do in recent months.
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btc price at $66,200 | Source: BTCUSD on Tradingview.com
Featured image from Reuters, chart from Tradingview.com
