Apr 30 2024: Bitcoin’s price remained relatively stable on Tuesday, staying within a lower range amidst ongoing outflows from U.S.-listed crypto investment products. Meanwhile, the launch of spot exchange-traded funds (ETFs) in Hong Kong did not immediately boost market sentiment significantly, given the smaller scale of the region’s capital markets compared to the U.S.
Bitcoin saw a modest 1.6% increase over the past 24 hours, reaching $63,423.3 by 01:26 ET (05:26 GMT).
Sustained Outflows in Crypto Investment Products
CoinShares data revealed that crypto investment products experienced their third consecutive week of capital outflows, totaling $345 million, the largest since March. Notably, Bitcoin witnessed significant net outflows amounting to $423 million, amid diminishing excitement surrounding the earlier launch of spot U.S. ETFs.
Hong Kong ETFs’ Debut and Market Impact
Six spot Bitcoin and Ethereum ETFs made a positive debut on Hong Kong markets, signaling some interest in crypto investment. However, the actual impact of these gains on crypto prices remained uncertain due to the relatively smaller size of Hong Kong’s capital markets compared to those in the U.S.
Despite the positive ETF reception, overall sentiment remained cautious, particularly due to economic challenges in mainland China and the lingering uncertainty in global markets.
Crypto Market Sentiment and Fed Meeting Expectations
The crypto market’s sentiment was further subdued by growing concerns about potential long-term U.S. interest rate increases, especially with the Federal Reserve meeting scheduled for this week. While a rate hike isn’t expected, investors are wary of any hawkish signals from Fed Chair Jerome Powell, especially given recent inflation data.
This cautious stance towards crypto was reflected in the performance of major tokens like Ethereum, which fell by 1.5%, Solana by 1.2%, and XRP gaining 1.4%, showing a mixed response amidst broader market uncertainties.