Three updates have taken the market by storm. First, the US inflation figure is above the expected amount. Second, BTC has started experiencing fluctuations in its value ahead of Halving. Third, Hong Kong is very likely to approve the Spot Bitcoin ETF and become the first Asian country to do so. The last update is likely to have a ripple effect with many more Asian countries following the trend.
For starters, the US Consumer Price Index, also known as CPI, rose to 3.5% in March on a year-to-year basis. That is up from 3.2% in February and above the expected value of 3.4%. This has been taken forward to assume that the Federal Reserve Bank may not cut rates as aggressively as it was initially anticipated to do so.
If anything, the chances have been slashed by 50% that there will be a third rate cut by the end of this year. This is down from 6 cuts as was expected at the beginning of 2024. The market has changed to an extent that major US Stock Indices fell by 1% when markets closed on Wednesday. This includes Nasdaq, S&P 500, and Dow Jones. Gold, Silver, and other precious metals have also retraced to a lower value instead of outperforming themselves.
A major effect has been seen on Bitcoin. The crypto giant fell close to $67,500 when the numbers were made public. Fluctuations continue with the current value having surpassed the milestone of $70,000. BTC is up by 0.28% in the last 24 hours, exchanging hands at $70,759.08. There is speculation that BTC may break even at ATH before Halving.
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For reference, Bitcoin Halving is tentatively scheduled to happen on April 20, 2024.
Arthur Hayes, the Co-Founder of BitMex, has backed ongoing fluctuations in the value of Bitcoin. Arthur has said that BTC’s prices may see correction ahead of Halving, adding that he was confident about crypto prices slumping around Halving. However, he did note that Bitcoin Halving comes with the historical context of fueling a price surge.
Analysts have speculated the price to go as high as $150,000. The original predicted estimate was $100,000 for year-end.
Finally, Asia could be entering into the landscape of the Spot Bitcoin ETF. Hong Kong is expected to finalize the development and make it public early next week. If Hong Kong does approve the Bitcoin ETF, it will become the first Asian nation to do so – also setting trends for other neighboring countries to follow.
Applicants of Bitcoin ETF include the likes of Harvest Fund Management and Southern Fund. This is interesting because they are the most significant asset managers hailing from China, a place where cryptos were banned for trade and mining.
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A rise in CPI, fluctuation in BTC, and Spot Bitcoin ETF in Asia are playing out well for crypto enthusiasts. They are hopeful that CPI will come down and the Fed will consider slashing rates. Fluctuations in BTC are setting the stage for a new ATH after Halving. And, Hong Kong is leading the way for the adoption of the Bitcoin ETF.
