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Bitcoin Faces Pullback: Will BTC Price Dip Below $60,000?

Bitcoin experienced a 5% pullback following the lackluster debut of Bitcoin and Ether ETFs in Hong Kong. The question on everyone’s mind: Can BTC dip below $60,000 due to high-leverage liquidation?

The price of Bitcoin dropped nearly 5% from its intraday peak of $64,734 as market participants showed little enthusiasm for the launch of spot Bitcoin and Ether ETFs in Hong Kong. This downward momentum pushed BTC even lower than the previous day’s price, driven by high leverages in anticipation of a relief rally. However, the debut of crypto ETFs in Hong Kong failed to impress the market.

Adding to the disappointment, U.S. Spot Bitcoin ETFs experienced their fourth consecutive day of outflows, with over $51 million withdrawn. These crypto investment products have seen three weeks of consecutive outflows, with the most recent week witnessing a substantial outflow of $435 million.

The six spot Bitcoin and Ethereum ETFs in Hong Kong recorded a mere $12 million in trading volume on their first day, a staggering 383 times lower than the debut of U.S. Bitcoin ETFs.

Following the lackluster ETF debut, traders quickly began shorting Bitcoin, leading to a sudden drop in BTC price to $61,451. This triggered a broader selloff in the crypto market, resulting in investors losing nearly $130 billion as the crypto market cap dropped to $2.27 trillion. Over $205 million in liquidations were recorded across the crypto market during this selloff, with $145 million from long positions and over $60 million from short positions.

More than 66,000 traders were liquidated, with the largest single liquidation order occurring on crypto exchange Binance, where someone sold ETH valued at $5.03 million. ETH price also plummeted over 5% in the last 24 hours.

Looking at macro factors, oil prices rose by 0.23% while gold prices fell by 0.71% as markets awaited the Federal Reserve’s policy decision and non-farm payrolls data later in the week. The U.S. dollar index (DXY) climbed toward 106, indicating pressure on Bitcoin as it tends to move opposite to DXY and Treasury yields. However, the Q2 2024 Treasury refunding announcement could potentially shift the tide in favor of Bitcoin.

The upcoming Federal Reserve meeting on May 1 holds significance for both the crypto and stock markets, as Chairman Jerome Powell could adopt a hawkish stance and announce fewer than three rate cuts this year. With recent U.S. inflation data coming in hotter than expected, discussions on the Fed table are heating up.

Crypto analyst Rekt Capital believes Bitcoin is still in a danger zone and could dip below $60,000, but he also hints at a possible rally starting in mid-May.

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Disclaimer: Not Investment Advice

it’s crucial to understand that the information provided here is not to be construed as investment advice. The crypto market is dynamic and highly speculative, and decisions should be made based on thorough personal research and consideration of individual risk tolerance. Always consult with financial professionals and conduct your own due diligence before making any investment decisions. The intention of this exploration is to present insights and trends, not to provide specific investment recommendations.

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