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Hong Kong's new Bitcoin and Ether ETFs debut with modest trading activity

Key points:

• Hong Kong's six new spot Bitcoin and ether ETFs launched on Tuesday.

• China Asset Management reported strong pre-trading subscriptions for their Bitcoin and Ether ETFs.

News - Hong Kong's foray into cryptocurrency exchange-traded funds (ETFs) witnessed a lukewarm start on Tuesday.

The six new spot Bitcoin and ether ETFs, launched by China Asset Management, Harvest Global, Bosera, and HashKey, saw a combined trading volume of around HK$49.4 million (US$6.3 million) during the morning session, according to data from the Hong Kong Stock Exchange (HKEX).

Which company excelled? China Asset Management's "ChinaAMC Bitcoin ETF" led the pack with a first-half trading volume of HK$22.97 million. Their Ether ETF followed closely with HK$10.47 million in volume.

Harvest Global's spot Bitcoin and ether ETFs recorded HK$8.11 million and HK$2.18 million in volume, respectively. Bosera HashKey's Bitcoin and Ether ETFs saw even lower volumes, at HK$3.59 million and HK$1.53 million during the morning session.

In conclusion - This initial trading activity pales in comparison to the US debut of 11 spot Bitcoin ETFs in January, which collectively saw a first-day volume of around $4.6 billion.

Solana shines while others struggle: Altcoin market faces bifurcation in 2024

Key points:

• Many altcoins, like MATIC, have struggled to hold onto their late 2023 gains.

• While SOL has maintained those gains so far in 2024.

News - While several altcoins surged in late 2023, only a few have sustained those gains. SOL stands out as a top performer throughout the last quarter of 2023 and the first half of 2024.

Many other altcoins haven't been as fortunate. Analyst ColdBloodShill points out that MATIC, for example, has erased all its late 2023 and early 2024 gains, even while Bitcoin remains relatively stable and other altcoins hold onto their advances.

What’s market bifurcation? This phenomenon, where certain tokens or stocks outperform others, is called market bifurcation. It can be driven by factors like social media buzz, investors’ risk tolerance, or compelling project narratives.

Further complicating matters for MATIC is the negative sentiment surrounding the project, with some labeling it a "zombie chain" despite its partnerships and network effects. Polygon founder Sandeep Nailwal pointed out recent positive developments like Robinhood wallet integration and stablecoin user growth, despite stagnant token prices.

Well, navigating this market bifurcation would require close attention to project narratives, price momentum, and portfolio adjustments to maximize returns.

MicroStrategy boosts Bitcoin holdings with 122 BTC purchases in April

Key points:

• MicroStrategy purchased an additional 122 BTC in April, increasing its total holdings to 214,400 BTC.

• The company remains confident in its Bitcoin strategy despite significant market downturns.

News - Business intelligence firm MicroStrategy has further solidified its position as a major Bitcoin holder by acquiring an additional 122 BTC in April. This latest purchase brings their total holdings to 214,400 BTC, valued at over $15.2 billion.

Since its initial Bitcoin investment in 2020, MicroStrategy has consistently expanded its portfolio, strategically accumulating around 1% of the total Bitcoin supply. This aggressive approach reflects the company's belief in Bitcoin as a core investment.

What’s more? In the first quarter of 2024, MicroStrategy's commitment to Bitcoin continued. The company acquired an additional 25,250 BTC for $1.65 billion, marking their 14th consecutive quarter of adding Bitcoin to their balance sheet.

However, this focus on Bitcoin coincided with a decline in overall company performance. MicroStrategy's first-quarter revenue dropped 5.5% to $115.2 million, with a net loss of $53.1 million. This loss was significantly impacted by a $191.6 million impairment charge on its Bitcoin holdings.

Michael Saylor, on the other hand, pointed to a 937% increase in MicroStrategy stock price (MSTR) since adopting the crypto approach in 2020. This can be compared favorably to Bitcoin's 435% growth and the S&P 500's 52% gain during the same period.

Crypto whales buy Cardano, Toncoin, and Arbitrum to maximize returns

Key points:

• Bitcoin's lack of post-halving price movement is leading institutional investors to explore other altcoins.

• Cardano is seeing increased whale accumulation, potentially boosting its long-term outlook.

News - With Bitcoin's price showing little movement since its recent halving, institutional investors are turning their attention to altcoins like ADA, TON, and ARB, anticipating a potential market surge.

Cardano - ADA has seen a steady rise in whale accumulation since late 2023, with a recent spike in large transactions (over $100,000) indicating continued whale interest. It hasn't translated to immediate price gains, however, Cardano's long-term prospects could benefit from this attention. Despite whales holding less than 10% of the circulating supply, their impact on daily trading volume is significant.

Toncoin - TON recently entered the top ten cryptocurrencies, surpassing established names like Shiba Inu and Cardano. This surge was fueled by rumors of a potential Telegram IPO, prompting whales to accumulate TON in anticipation of a price rise. The strategy appears to have paid off initially, with Toncoin's price rallying 238% before a recent correction.

Arbitrum - ARB presented a more complex picture. Despite ongoing price declines over the past two months, whales have been actively accumulating the token. This could be an attempt to prevent further price drops, or a strategic move to capitalize on an upcoming token unlock event on 16 May. Well, the influx of unlocked tokens (over $100 million worth) could negatively impact the market, and whales may be looking to sell before that happens.

More stories from the crypto ecosystem

• Ethereum to outshine Bitcoin this summer? Raoul Pal’s bold prediction

• Bitcoin dominance falls: Time to stock up altcoins like LINK now?

• Ripple’s market woes: Can XRP overcome ‘zombie’ status?

• BONK’s bullish run begins, but why you should stay cautious

• Crypto market’s weekly winners and losers – BONK, PEPE, ENA, RON

Interesting facts

• There exist over 12,000 cryptocurrencies, some on centralized exchanges, while others are on DEXes and require their own wallets. However, the top 20 cryptocurrencies make up 87% of the crypto market cap.

• Cryptocurrencies are favored due to their cryptographic algorithms, generally perceived to be unbreakable. However, quantum computers can easily break these encryption methods.

• Every day, there are over 1.1 million Ethereum transactions, around 6 times more than Bitcoin on average.

Top 3 coins of the day

Avalanche (AVAX)

Key points:

• At press time, AVAX noted a negative change of 12.60% over the last seven days.

• Sellers dominated the daily chart as AVAX followed Bitcoin’s footsteps closely.

What you should know - Broader market registered corrections towards the last few days of April. AVAX followed suit with its daily chart flashing lower lows. From 11 March to 2 April, AVAX saw buyers outnumbering the sellers. But soon after Bitcoin halving, the momentum changed. At the time of writing, it was facing resistance around the $50 mark. While bulls attempted to push the price higher earlier in the week, they were met with strong selling pressure. The RSI of 38 added to the neutral outlook for AVAX in the short term. While it suggested a possible bounce, only a confirmed breakout above $40 resistance and a rising RSI would strengthen the bullish case.

Chainlink (LINK)

Key points:

• LINK was trading at $13.22, at the time of writing.

• It was down 4.83% over the last day.

What you should know - LINK remained mired in a downtrend, struggling to break above the $17 resistance level. The overall trend suggested a bearish bias. MACD indicators on both daily and lower timeframes painted a neutral picture, highlighting the lack of momentum in either direction. A decisive break below the $13 support could see LINK revisit the $12 level. Conversely, a surge above $19 resistance might signal a short-term trend reversal, but overcoming the overall downtrend will require sustained buying pressure.

TRON (TRX)

Key points:

• Tron saw high activity in its derivatives market.

• Long positions outnumbered the short positions.

What you should know - TRX stood out as the only gainer among the top 20 coins over the past week, defying the broader market weakness. This bullish momentum was reflected in the price chart, where TRX traded above its 200-day Simple Moving Average (SMA), indicating a long-term uptrend. However, the price remained below the crucial 100-day SMA, suggesting some short-term resistance. At press time, the 50-day SMA was acting as support. The formation of higher highs on the chart hinted at the potential continuation of the uptrend. Despite the positive signs, caution is warranted. Breaking above the 100-day SMA and maintaining that level will be crucial for TRX to solidify its bullish momentum.