The recent decline in Bitcoin price has some similarities to its behavior after United States-based spot Bitcoin exchange-traded funds (ETFs ) launched in January, with one trader suggesting that this could mean an upswing in the “next week or so.”
Spot Bitcoin (BTC) ETFs were launched in Hong Kong on April 30, with around $217 million worth of net inflows since. However, the price of Bitcoin has fallen almost 7% since the products launched, according to CoinMarketCap data.
WhereAt Social co-founder and crypto trader Quinten Francois suggested the behavior holds similarities to the launch of spot Bitcoin ETFs in the U.S., which saw the price of Bitcoin fall 14% within 12 days of their launch before rising 7% over the following seven days.
If Bitcoin’s price continues to follow the same trend, it could see an upswing in the “next week or so,” Francois said in a May 1 post on X.
“There is no straight line to the top. Price correction was more than needed,” added pseudonymous crypto trader StockLizard.
However, there are some key differences between the two launches. While Hong Kong Bitcoin ETFs have seen $217 million worth of net inflows since launching, U.S. ETFs experienced $794 million in outflows over the same period.
The Hong Kong-based ETFs also accumulated only $12.4 million in trading volume on their first day, a major difference from the $4.6 billion first-day trading volume of U.S. spot Bitcoin ETFs.
Hong Kong’s ETF launches also came just after the Bitcoin halving, which often comes with a period of “sideways” price action along with continued heightened tensions in the Middle East and the U.S. Federal Reserve maintaining high interest rates.
However, Bloomberg ETF analyst Eric Balchunas argued in an April 30 post on X that this is a high figure considering the size of Hong Kong is approximately “1/168th the size of the U.S.”
Some traders are concerned that inflows from Hong Kong might not be sufficient to offset the large amount of recent outflows from the U.S., potentially preventing a similar breakout pattern.
“Hong Kong Bitcoin ETFs are not enough to absorb US ETF selling pressure,” Crypto trading team TOBTC stated in a May 2 post on X.
Related: Analysts expect Bitcoin price recovery after Fed leaves rates unchanged
Meanwhile, other traders believe the recent price decline is a healthy market correction for Bitcoin’s price.
“The longer theBitcoin consolidation takes the higher its price will meet the trendline,” crypto trader Titan of Crypto stated in a post on X.
“Bitcoin’s most recent correction was much needed for price going forward,” added crypto commentator CryptoCon.
“The thing Bitcoin critics don’t understand is that we simply don’t care if the price drops,” echoed founder of AirBtc Handre van Heerden.
Magazine: Hong Kong Bitcoin ETF launch in ‘top 20%’, STRK scam suspect busted: Asia Express
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.