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The cryptocurrency market is on weekends.CrashbandicootepsxeHong Kong virtual asset ETF is about to open, and investors are waiting for it to bring more liquidity boost to the encryption market. However, analysts warn that the lack of a positive catalyst could cause the currency to continue to fall amid growing concerns about US inflation.

Bitcoin continued to trade below $63000 on Monday. Bitcoin fell below support of $63600 in the early hours of Monday and fell to an intraday low of $61750 in the afternoon, according to comparison data, as bullish inflows prevented a further correction, and Bitcoin briefly rebounded above $63000. It fell below $63000 again as of this writing, down 1 per cent in 24 hours.

Counterfeit coins have been hit hard by the weakness of Bitcoin, with only 10 of the top 200 tokens by market capitalization rising on Monday. Amp (AMP) was the most prominent performer, with an increase of 18%Crashbandicootepsxe.75%, followed by BinaryX (BNX) up 6%Crashbandicootepsxe.4% of the HNT rose 5.7%.

At present, the overall market capitalization of cryptocurrency is $2.32 trillion, and the main market value of Bitcoin is 53.4%.

U. S. stocks were volatile on the day, showing an upward trend at the start of trading, then fell under pressure, and the main stock index lost its gains near midday. The downgrade comes after the US Treasury raised its federal borrowing forecast for the quarter by $41 billion to $243 billion.

As a result, the yield on the 10-year note rebounded to 4.65% after falling to 4.613% earlier in the trading day. It has been falling since then, trading at 4.607% as of this writing. By the close, the s & p, Dow and Nasdaq all closed higher, up 0.32%, 0.38% and 0.35%, respectively.

Hong Kong spot encrypted ETF will be unveiled soon

Spot bitcoin and ethernet ETF in Hong Kong will begin trading on Tuesday morning local time, and as of press time, there has been no frenzy in currency prices and volumes similar to those of spot bitcoin ETF in the US at the time.

In the three months before the US spot bitcoin ETF debut on January 11, BTC prices almost doubled, with a flood of capital inflows spurring BTC to exceed $73000 in March.

However, issuers in Hong Kong say they are confident. Zhu Haokang, head of digital asset management and family wealth at Huaxia (Hong Kong), said that apart from Grayscale, the other 10 US bitcoin spot ETF issuers will issue US $125 million on the first day of January 10 this year, and the initial public offerings of the three issuers in Hong Kong will exceed that figure, and Huaxia will be the largest of the three, according to Zhitong.

Unlike American products, spot ETF in Hong Kong allows cash and in-kind purchase or renewal. Huaxia's ETF is the only one offering three counters in US dollars, Hong Kong dollars and RMB, and it is also the only ETF issuer with an unlisted share. Many investors in traditional encrypted assets have actively participated in its IOP (initial public offering) phase. Bitcoin miners, places outside Hong Kong such as Singapore and the Middle East, and local family offices are all interested in investing in their ETF.

Analysts expect that Hong Kong spot bitcoin and Ethernet Fong ETF assets under management are expected to reach $1 billion in the future, but it will take time to see whether this can be achieved.

Focus on key economic data this week

Looking to the broader market, Secure Digital Markets said: "the focus of the market is the upcoming corporate earnings report, important employment data and the Fed meeting."

"the focus of this week's earnings includes reports from PayPal and Amazon on Tuesday and results from Apple, Coinbase and Block on Thursday," they said. Monetary policy will also attract market attention, and the Fed is expected to leave interest rates unchanged on Wednesday. Although interest rates are not expected to change, investors will be watching closely what Chairman Jerome Powell said at a subsequent press conference. "

Analysts concluded: "this expectation was formed before Friday's April non-farm payrolls report, which is a key indicator of labor market strength and a key factor in the Fed's policy decisions and overall economic assessment."

Long target: more than $67500

"Bitcoin is showing a downward trend, with intraday chart highs and lows continuing to fall and rebounding from today's lows of $61800," analysts said. It is still under pressure below the 20-and 50-day moving averages, indicating bearish momentum. "

The uncertainty of the future of interest rates is the main source of volatility. "the combination of anaemic growth and persistent inflation has reduced the likelihood of the Fed cutting interest rates, casting a shadow over risky assets," analysts wrote. Bulls need to rebound above $67500 to regain dominance.

The reversal of ETF traffic has also put pressure on the price of bitcoin, translating into weakness in the cryptocurrency market as a whole. There was a massive outflow of money from Bitcoin ETF on Friday, totaling $83.6 million, of which $82.4 million was from Grayscale alone. BlackRock faces no inflows for the third day in a row.

Milkybull Crypto, an economist and cryptocurrency trader, said Bitcoin's current weakness could be "the last shock before rebounding to the top of the cycle".

"if you look at the 2017 PA, when it breaks a new record, there is a healthy liquidity-attracting correction before it rebounds to the top of the cycle," he says.

Milkybull Crypto added: "the previous consolidation from December 2023 to February 2024 also reflects the current scope of integration, and MM's manipulation strategy is to get rid of STH, which is very sensitive to price adjustments, especially if the price is below its cost base. Liquidity contention area: $57000 to $59,000CrashbandicootepsxeSTH cost base: $59788, these are important areas to observe during the final shuffle. "