Bitcoin ETF Approval in Hong Kong Drives BTC Price Surge Above $66k

After a weekend of chaos between Iran and Israel, which dipped the Bitcoin price to a low of $62,000, the cryptocurrency market has exhibited significant volatility. However, with the approval of spot Bitcoin ETFs in Hong Kong on the horizon, both Bitcoin (BTC) and Ethereum (ETH) have seen a notable uptick in their prices.

BTC/USD 24-hour price chart (source: CoinMarketCap)

Hong Kong Bitcoin ETF Approval Spurs Market Optimism

Despite the absence of an official announcement from the Securities and Futures Commission (SFC) in Hong Kong, several applicants, including China Asset Management and Bosera Capital, have announced on social media platforms that they have been approved for listing spot Bitcoin and Ethereum ETFs. This news has triggered positive sentiment in the market, leading to a 2.8% increase in Bitcoin's price, which is now trading above $66,500, while Ethereum has surged to $3,240.

The anticipation of spot Bitcoin ETFs being approved in Hong Kong has opened up new opportunities for institutional investors, particularly those in the Asian market. QCP Capital, a Singapore-based digital assets trading house, believes that the approval of these ETFs will unlock institutional demand during Asia trading hours, providing investors with an alternative to exposure in US hours.

Market Analysis and Short-Term Predictions

Bitcoin analyst Willy Woo has provided insights into the current market conditions, indicating critical support levels and potential short-term price movements. Woo suggests that while Bitcoin's price has experienced volatility due to geopolitical tensions, it has partially recovered and is currently trading at $65,342.71, with a market cap of $1.3 trillion. He emphasizes the importance of key support levels, particularly $58.9k, and

predicts short liquidations in the range of $71-$75k in the near term.

Despite the geopolitical uncertainties, Woo remains cautiously optimistic about Bitcoin's outlook, highlighting ongoing accumulation during the consolidation phase. He underscores the significance of prolonged consolidation around all-time highs, which facilitates price discovery and strengthens Bitcoin's position as a trillion-dollar asset class.

Potential Challenges and Opportunities for Miners

As the Bitcoin halving event approaches, miners are bracing for potential revenue losses. The halving, which will reduce daily rewards for miners from 900 to 450 Bitcoins, could result in an annual revenue decline of approximately $10 billion for the mining industry. To mitigate these losses, companies like Marathon Digital Holdings Inc. and CleanSpark Inc. are investing in new mining equipment and acquiring smaller competitors.

Despite the challenges posed by the halving, Bitcoin's surging value has propelled the expansion of cryptocurrency mining operations. Publicly listed miners in the US, representing roughly 20% of the sector's overall computing power, have seen their market capitalization surge to approximately $20 billion. However,

private miners who rely on debt financing or venture capital may face greater vulnerability following the halving.

Amidst the geopolitical tensions and market volatility, Galaxy Digital CEO Mike Novogratz remains optimistic about Bitcoin's future. He believes that Bitcoin will resume its upward trend once the current market turbulence subsides. With the Bitcoin halving event expected to create a supply shock in the market and the potential approval of spot Bitcoin ETFs in Hong Kong, there is optimism for a bullish trend in the cryptocurrency market.