As fears mount over the bull market, Bitcoin has seen its price tumble through $57,000.
BTC – Daily Chart
The price of BTC has support at the $57,343 level and is trying to find buyers there. If it does not hold, $50k will be the next target.
Standard Chartered also highlighted the $50k level and said liquidations could occur.
“This means that more than half of the spot ETF positions are underwater and so the risk of liquidation of some of them must be considered as well,” analyst Geoff Kendrick said.
He also cited poor headlines surrounding the Hong Kong spot ETF launch, with attention focused on the turnover volume of $11 million “rather than the net asset position of the new ETFs, which was pretty good.”
On Tuesday, Hong Kong launched six spot bitcoin and Ethereum exchange-traded funds, becoming the first in Asia to offer retail investors access to cryptocurrencies at spot prices. Three firms issued the funds: China Asset Management, Bosera Asset Management, and Harvest Global Investments.
Investors have shied away from Bitcoin as stocks sell-off, and the recently completed halving event failed to inspire bullish activity. The halving occurs every four years, and mining rewards are cut in half. That reduced the coin supply, and investors hoped the recent demand for ETFs would boost the price again.
Bitcoin is finding support at around $58,000, but further liquidations could still be around the corner, so investors should be careful of the environment in stocks. Comments from the Federal Reserve will set the tone for Thursday’s asset price movements.
“As much as Chair Powell would prefer to play up ‘two-sided risks to the economic outlook’, the reality is the preponderance of evidence supports the ‘no landing’ scenario as the highest probability outcome. As such, ‘higher for longer’ is likely to be the dominant message today,” said Darius Dale at 42 Macro.
