📉 Cryptocurrencies resume dynamic downward movement
Ethereum is losing more than 5.5% today after spot ETFs in Hong Kong disappointed the expectations of some investors and did not prove to be a catalyst for growth. Additionally, sentiment on Wall Street remains weak, ahead of tomorrow's Fed meeting and Chairman Powell's speech. After the recent higher-than-forecast inflation data, investors are concerned that dollar strength and rising yields will put additional pressure on risky assets.
- Trading volume of spot funds for Bitcoin and Ethereum in Hong Kong totaled $11 million.
- Some asset managers at China Asset Management, among others, suggest that similar funds will also be established in mainland China, but this is impossible at this point due to regulations
- Bloomberg estimates that after two years of activity, spot funds will have bought up about $1 billion worth of BTC and ETH
- This does not seem to be enough demand, to significantly impact Bitcoin or Ether (the capitalization of both cryptocurrencies is about $1.2 trillion and $360 billion, respectively)
Risk aversion is putting some pressure on spot ETFs in the US, which have accumulated more than $12 billion worth of BTC in a few months. Yesterday, the funds recorded another week session, reducing the value of BTC by about $51 million and the main seller this time was not Grayscale. Inflows to BlackRock and Fidelity are proving to be minimal, although it can be seen as a positive that investors are practically not selling out of them, despite the 20% drop in BTC from ATH. Source: XTB Research, Bloomberg Finance LP
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile app
Ethereum breaks through the psychological barrier of $3,000 and thus records nearly 5.5% intraday declines. Source: xStation5
ETH's weakness is also felt by altcoins, which are losing sharply during today's session. Source: xStation5
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.