Bitcoin Slips to $63K as Crypto Market Faces More U.S. Regulatory Pressure

Digital assets had a mixed performance; While BTC lost 1.5%, Solana’s SOL and XRP gained the most among the crypto majors.

Robinhood announced that its crypto arm received a warning from the SEC that could herald enforcement action.

An Elliot Wave technician sets a price target of $92,000 for Bitcoin’s next high.

The crypto rally stalled during US trading hours on Monday, with Bitcoin {{BTC}} falling to $63,300 as US regulators increased pressure on crypto companies.

A move above $65,000 early Monday quickly reversed, with prices coming under further pressure after popular brokerage firm Robinhood (HOOD) announced that its crypto arm had received a Wells Notice from the U.S. Securities and Exchange Commission (SEC) over the weekend. stayed; this was often a precursor to sanctions. lawsuit against a company.

However, the pullback has been shallow and most crypto assets are trading above last week’s low. BTC was down 1.5% in the last 24 hours but was still up over 10% from Wednesday.

Alternative cryptocurrencies, ether {{ETH}}, dogecoin {{DOGE}}, shiba inu {{SHIB}}, and layer-2 network Polygon’s native token {{MATIC}} are up 2% on the day. It had a mixed performance, losing 3% in value. Solana {{SOL}} and Ripple’s neighboring XRP showed relative strength, advancing by 4%-6%. The broader market gauge CoinDesk 20 Index (CD20) was down 0.3%.

Despite the rally stalling, crypto hedge fund QCP Capital observed renewed demand for bitcoin call options with strike prices of $75,000 and $100,000 for September, underscoring growing optimism that BTC will climb to higher prices over the next few months.

“We are seeing an upward trend in volatility and [funding] Crypto hedge fund QCP Capital noted in a market update on Monday that it is tracking rates’ reversal from Friday into the weekend.

Hong Kong ETF rumors

Perhaps fueling the rapid recovery from last week’s lows were rumors of expanding access to newly listed Hong Kong spot bitcoin and ethereum ETFs for Chinese investors.

Richard Byworth, managing partner at Syzcapital, said in an .

I just returned from Hong Kong. There is talk that the ETF could be added to the stock link. The implications of this are absolutely huge (basically meaning mainland money can buy this)

— Richard Byworth ∞/21M (@RichardByworth) May 1, 2024

Theoretically, this move will have a significant impact on opening the floodgates of Chinese money seeking alternative assets amid the real estate and stock market collapse.

The story continues

However, crypto ETFs by Chinese investors were banned and there was no official announcement regarding the change of rules.

Read more: Bitcoin ETFs Listed in Hong Kong Could Open Up to $25 Billion in Demand, Crypto Firm Says

BTC targets $92,000 but the bottom may not be there

Bitcoin ended last week on a bullish tone, quickly recovering from its decline to $56,000. John Glover, chief investment officer at crypto lender Ledn, said there was still a chance of a breakout that would send prices lower before ending the correction from March’s all-time high at $73,000.

“While the drop to $56,500 has completed the correction, I still expect to see a price between $52-$55,000 before wave 4 is completed,” Glover said, referring to Elliot Wave theory, a technical analysis that assumes asset prices move repeatedly. wave patterns.

The theory suggests that price trends develop in five stages; Of these, waves 1, 3 and 5 are the driving waves representing the main trend, and waves 2 and 4 are the pullbacks between the driving price movement.

“One time [corrective] “Once the wave is complete, I expect Wave 5 to move towards around $92,000,” he concluded.