Bitcoin price today: Weakens to $62k amid rate fears, Iran-Israel tensions

April 16, 2024 03:44 PM AEST | By Investing

Bitcoin price today: Weakens to $62k amid rate fears, Iran-Israel tensions

Hong Kong crypto ETF approval provides little cheer

Weak risk appetite largely overshadowed the approval of spot crypto exchange-traded funds by Hong Kong regulators on Monday.

The move offers Hong Kong and Chinese investors some exposure to crypto markets, after cryptocurrencies were effectively banned in mainland China in 2021 over issues of gambling and market manipulation.

But while three ETF providers received approval for the products from Hong Kong regulators, they are yet to launch any offerings.

It remains to be seen whether the Hong Kong ETFs can inspire a rally in Bitcoin akin to that seen in U.S. markets earlier this year. The approval of spot U.S. ETFs had sparked a stellar rally in the world’s biggest cryptocurrency over the past two months, although capital flows were now seen slowing as enthusiasm cooled.

Crypto price today: prices fall as crypto ETFs see outflows

Broader cryptocurrency prices fell on Tuesday, as risk appetite remained weak amid Iran-Israel tensions, as well as the prospect of higher-for-longer U.S. interest rates.

Ethereum fell 2.9% to $3,047.26, while XRP and Solana lost 2.1% and 9.8%, respectively.

Crypto prices had seen a flash crash over the weekend following an Iranian strike against Israel, although they recovered some ground after reports showed the damage from the attack was minimal.

But reports this week showed that Israel was now considering retaliation for the attack.

Hotter-than-expected U.S. retail sales data saw the dollar surge to over five-month highs, while anticipation of an upcoming speech by Fed Chair Jerome Powell also kept traders on edge.

The weak risk environment saw traders grow more hesitant towards speculative assets such as crypto.

Data from digital asset manager CoinShares also showed on Monday that crypto investment products saw outflows over the past week.

This article first appeared in Investing.com

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