You are here: Home > articles > Forex > Bitcoin holds above $70,000 as halving event looms – Crypto News
Bitcoin holds above $70,000 as halving event looms – Crypto News
April 12, 2024 11:27 amVideo
Latest News
- Technical Analysis – GBPUSD ticks down to new 5-month low April 12, 2024
- Bitcoin holds above $70,000 as halving event looms – Crypto News April 12, 2024
- Week Ahead – More inflation data on the way as rate cut bets thrown into disarray April 12, 2024
- Bitcoin will thrive during supply crisis April 12, 2024
- Technical Analysis – EURUSD plummets after US CPI and ECB decision April 12, 2024
- Will US retail sales add juice to the dollar’s rally? – Preview April 12, 2024
- Technical Analysis – GBPUSD outlook worsens after rapid fall April 12, 2024
- Market Comment – Dollar pulls back; ECB sends clearer cut signals April 12, 2024
- Hot forecast for EUR/USD on April 12, 2024 April 12, 2024
- Analysis and trading tips for USD/JPY on April 12 April 12, 2024
- Analysis and trading tips for GBP/USD on April 12 April 12, 2024
- Analysis and trading tips for EUR/USD on April 12 April 12, 2024
- Technical Analysis – USDCAD reaches new 2024 high; could this move continue? April 12, 2024
- Forecast for EUR/USD on April 12, 2024 April 12, 2024
- Forecast for GBP/USD on April 12, 2024 April 12, 2024
- Forecast for AUD/USD on April 12, 2024 April 12, 2024
- Outlook for GBP/USD on April 12. The pound once again failed to leave the same range April 12, 2024
- Outlook for EUR/USD on April 12. New ECB meeting April 12, 2024
- The market is disappointed and softening expectations for the FOMC rate April 12, 2024
- Christine Lagarde: inflation is easing April 12, 2024
Bitcoin trades sideways after posting 3-week high on Monday
Cryptos seem resilient to expectations of fewer rate cuts
Spot Bitcoin ETFs could soon get approval in Hong Kong
Halving to occur next week, will it be a sell-the-fact event?
Bitcoin stable around all-time highs
Bitcoin has been in a steady upside trajectory since the beginning of the month, surging to a fresh three-week high of $72,730 on Monday. This bullish wave got disrupted by the stronger-than-expected US inflation report on Wednesday, which triggered bets of a slower rate cut path for the Fed, dampening demand for risk sensitive assets.
Despite this minor pullback, Bitcoin quickly found its feet and reversed back higher, trading essentially flat on the week. Surprisingly, the king of cryptos capitalised on its reputation as an inflation hedge that the markets seem to have neglected for some time, but the upcoming halving event brought it back in fashion.
Bitcoin’s capped supply theoretically enables it to act as a store of value in inflationary periods and this effect probably outweighed the impact of higher rates moving forward. With Bitcoin halving just around the corner, traders are bracing for a period of heightened volatility as the exponential rally following the introduction of spot-Bitcoin ETFs might have front ran the impact of the event.
Hong Kong ETF approval could spur Chinese demand
There has been increasing speculation that spot-Bitcoin ETF applications could be greenlighted in Hong Kong by May, with at least four Chinese and Hong Kong based asset managers having applied for such investment vehicles. Should that scenario materialise, the regulatory clearance would come a lot quicker than initially expected, opening the way for a new round of institutional inflows in the sector.
As Bitcoin trading is essentially banned in China, Hong Kong-listed ETFs could attract Chinese funds that seek exposure in cryptos. Considering that the Chinese stock market is tanking and dark clouds are hanging over the domestic property sector, Chinese investors could use these products to diversify their investment holdings, which right now seem to be heavily concentrated in gold.
Meanwhile, the global market is anticipating SEC’s decisions on both spot-Ethereum ETFs and Bitcoin ETF options, both of which are expected to improve efficiency in the crypto market and probably attract fresh capital.
Levels to watch
Despite posting a fresh three-week high on Monday, BTCUSD experienced some losses following a hotter-than-expected US CPI print. However, the bulls fought back and pushed the price back above the $70,000 psychological mark.
For the rebound to resume, the price needs to claim the $71,300 resistance zone before challenging the recent three-week peak of $72,730.
On the flipside, bearish actions could send the price lower to test the 68,850 support region ahead of the latest deflection point at $67,460.
Related Posts: