empty
21.02.2023 01:42 PM
Bitcoin: Hong Kong could become unexpected bullish driver for BTC

Bitcoin's technical situation has remained unchained. Any significant moves on Wednesday before the release of the FOMC meeting minutes are unlikely. BTC is likely to continue to fluctuate near the $25,000 area.

While investors await short-term drivers and clarity, let us have a look at events happening behind the scenes, as well as the potential impact of yesterday's decision by Hong Kong regulators on the crypto market.

This image is no longer relevant

Institutional capital outflows from digital investment products

According to the latest report by digital asset manager CoinShares, outflows from large institutional investment digital asset products hit the highest level this year.

The report said the following:

"Digital asset investment products saw outflows totaling $32 million last week, the largest since late December 2022. Midway through last week the outflows were much higher at $62 million, but sentiment improved by Friday with inflows of $30 million."

As usual, long-BTC products were hit the heaviest. Meanwhile, short-Bitcoin products enjoyed the second-most year-to-date inflows, being only behind long-BTC products.

"Bitcoin bore the brunt of the negative sentiment, seeing nearly $25 million of outflows, while short-bitcoin investment products saw inflows of $3.7 million and has seen some of the largest inflows YTD of $38 million, second only to Bitcoin with $158 million."

Analysts at CoinShares noted that negative sentiment has been very uneven. Outflows from Ethereum, Cosmos, Polygon, and Avalanche were estimated at $7.2 million, $1.6 million, $0.8 million and $0.5 million, respectively. At the same time, Aave, Fantom, XRP, Binance, and Decentraland received inflows between $0.36 to $0.26 million.

New sideways trend ahead for Bitcoin

Meanwhile, popular crypto analyst Benjamin Cowen has suggested that Bitcoin is set to move within its price range for much of 2023.

Cowen examined at the MVRV Z-score indicator, which compares the realized value of an asset to its market value.

The MVRV Z-score highlights the extremes in the data between market value and realized value to attempt to identify long-term trend reversals.

According to Cowen, BTC could in theory consolidate within its range until 2024 before a sustained bull market rally begins.

"I would argue that what you're most likely going to see this year is a recovery year, where you spend about half the time moving higher, and half the time moving lower. You can break that up in different months, so you know 2018, 2014, 2022, we had like eight or nine red months, but in the recovery years, it's split more or less half and half."

Cowen predicted that both the MVRV Z-score and Bitcoin's price could surge in 2024 after a recovery year, which would then lead to a halving.

"Once we get into 2024 and the next halving, ideally, a rally, a more of a sustained rally where we see the MVRV Z-score go to much higher levels."

Hong Kong - new crypto market driver

Yesterday, a notable event occurred that could become a new bullish driving force for the cryptocurrency market.

The Securities and Futures Commission of Hong Kong released a statement outlining its plan to allow both institutional and retail investors to trade cryptocurrencies such as Bitcoin and Ethereum.

Cryptocurrency exchanges in Hong Kong could obtain a Virtual Asset Service Provider (VASP) license to operate legally in China's special economic zone.

Why can Hong Kong trigger a bull rally in the crypto market? The opening of Hong Kong for crypto means a massive influx of new funds could be possible. Hong Kong is the fourth largest financial center in the world after New York, London, and Singapore, making it one of the largest global metropolitan hubs.

Moreover, this special economic zone is seen as the primary opportunity for wealthy residents of mainland China to move their capital out of the isolated country. It is estimated that mainland Chinese are moving about $500 billion in the special economic zone in order to gain access to the global financial system.

Although Hong Kong will not have truly decentralized cryptocurrency applications and self-storage, this infusion of new capital could be very good news for cryptocurrency markets.

Rising liquidity in China

Hong Kong's plans to become a crypto hub coincide with China's reopening after the coronavirus pandemic. Last Friday, the Chinese central bank performed the largest liquidity injection in its history to help pull the country's economy out of its historic slowdown. About $92 billion was injected to lower borrowing rates and ease access to cash, which was very similar to the Fed's measures during the pandemic.

It also has implications for cryptocurrencies. Analysts note that the People's Bank of China is the third-largest central bank in the world, with about $6 trillion in assets, and plays a key role in global liquidity.

Japan has the fourth-largest central bank in the world. Together, these two countries provide liquidity to global markets, moving far ahead of the Fed's tightening measures. As a result, global liquidity is already on the rise.

Meanwhile, cryptocurrencies are not tied to any particular economy or organization, but are rather liquidity consumers - they are waiting for the risk-hungry investor to get their money and bet on the fastest horse. That is precisely what might happen this year in China.

Economists expect the People's Bank of China to play its part in stimulating the Chinese economy and cut interest rates in the coming months to support and encourage a sustained economic recovery.

Not all of the money injected by the PBoC will end up being invested in risky assets. But the opening of Hong Kong as a crypto hub, combined with Chinese monetary policy, could prove to be the catalyst for a new Bitcoin bull market.

Ekaterina Kiseleva,
Chuyên gia phân tích của InstaForex
© 2007-2025
Chọn khung thời gian
5
phút
15
phút
30
phút
1
giờ
4
ngày
1
ngày
1
tuần
Kiếm lợi nhuận từ những biến đổi giá của tiền điện tử với InstaForex.
Tải MetaTrader 4 và mở giao dịch đầu tiên của bạn.
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    THAM GIA CUỘC THI

Các bài báo được đề xuất

Tin tức tóm tắt Thị trường Mỹ ngày 17 tháng 3

Các chỉ số chứng khoán Mỹ, bao gồm S&P 500 và Nasdaq, đã kết thúc tuần một cách tự tin trong vùng tích cực. Điều này phần

Ekaterina Kiseleva 13:32 2025-05-05 UTC+2

Châu Âu tạm dừng: Điều gì đứng sau sự sụt giảm thị trường chứng khoán và hoạt động bất ngờ của Trump

Các cổ phiếu châu Âu giảm nhẹ; STOXX 600 - giảm 0,1%, Pháp - giảm 0,3%. Các nhà đầu tư đang chờ đợi dữ liệu về các cuộc đàm phán

Thomas Frank 11:34 2025-05-05 UTC+2

Tin tức tiêu điểm thị trường Mỹ ngày 2 tháng 5

Các chỉ số chứng khoán Mỹ tiếp tục leo cao mặc dù có sự bất định kinh tế kéo dài. Sự lạc quan của nhà đầu tư đang được thúc

Ekaterina Kiseleva 13:14 2025-05-02 UTC+2

Tóm tắt tin tức thị trường Mỹ ngày 1 tháng 5

Thị trường chứng khoán Mỹ đã trải qua những biến động đáng kể trong tháng Tư, nhưng một đợt tăng điểm thành công đã giúp các chỉ số chính

Ekaterina Kiseleva 11:54 2025-05-01 UTC+2

Bữa tiệc trong cơn bão: S&P 500 kỷ niệm mức tăng khi đồng đô la suy yếu và Trung Quốc giảm đà

S&P 500 Tăng Liên Tiếp Sáu Ngày Giá Dầu Giảm Hơn 1% Hoạt Động Sản Xuất Của Trung Quốc Giảm Mạnh Khi Thuế Quan Của Trump Tiếp Tục Siết Chặt

Thomas Frank 12:09 2025-04-30 UTC+2

Bản tin Thị trường Hoa Kỳ ngày 30 tháng 4

Các chỉ số chứng khoán Mỹ vẫn duy trì xu hướng tích cực, nhưng áp lực thị trường đã gia tăng do cổ phiếu Super Micro giảm mạnh

Ekaterina Kiseleva 11:13 2025-04-30 UTC+2

Thị trường chứng khoán phục hồi sự lạc quan. Tìm kiếm các điểm vào mới ở đâu

Chứng khoán châu Âu đã tăng điểm nhờ hy vọng giảm bớt căng thẳng thương mại giữa Mỹ và Trung Quốc. Giá dầu WTI giảm 1,54% còn $62,05, trong

12:42 2025-04-29 UTC+2

Tin Tức Tiêu Điểm Thị Trường Mỹ Ngày 29 Tháng 4

S&P 500 và Nasdaq tiếp tục tăng, duy trì đà phát triển mặc dù có những biến động trái chiều ở các lĩnh vực khác. Ngôn từ mềm mỏng

Ekaterina Kiseleva 11:59 2025-04-29 UTC+2

Lạc quan trở lại với các thị trường: Nơi nào để tìm kiếm điểm tăng trưởng mới

Chứng khoán châu Âu tăng nhờ kỳ vọng vào việc giảm căng thẳng thương mại giữa Mỹ và Trung Quốc. Dầu WTI giảm 1.54% xuống còn $62.05, dầu Brent giảm

Thomas Frank 10:42 2025-04-29 UTC+2

Tin Tức Thị Trường Mỹ Ngày 28 Tháng 4

Chỉ số S&P 500 và Nasdaq đã kết thúc phiên giao dịch trước đó với mức cao hơn, bất chấp hiệu suất thất thường trên các sàn giao dịch châu

Ekaterina Kiseleva 11:31 2025-04-28 UTC+2
Không thể nói chuyện ngay bây giờ?
Đặt câu hỏi của bạn trong phần trò chuyện.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.