Bitcoin Back in Green as Crypto Market Awaits Hong Kong Spot ETF Decision

Over the past weekend, Bitcoin’s price dipped below $62,000 due to heightened geopolitical tensions that unsettled the markets. Fortunately, the situation appears to have deescalated as the US has reportedly decided against participating in any Israeli military action against Iran, according to Al-Jazeera’s reports.

According to predictions on the Polymarket trading platform, there’s around a 4% likelihood that Israel will take military action against Iran by April 15th. This probability has significantly decreased from approximately 57% right after Iran’s missile strike.

During times of high conflict, the value of PAXG, a digital representation of gold issued by Paxos, rose by 20% compared to its traditional equivalent in the crypto market. As investors sought refuge in gold’s stability, they shifted away from riskier assets.

Prior to the onset of the tension, the digital asset market was experiencing significant selling pressure due to the U.S. tax season. This periodically occurs before a cryptocurrency’s halving event takes place.

If the reduction in supply (halving) happens when there’s less available dollar liquidity than normal, it could fuel the intense selling (firesale) of cryptocurrencies even more.

Traders look forward to the anticipated debut of Bitcoin and Ether ETFs in Hong Kong this week, providing Chinese traders with simpler access to investing in digital assets. According to Matrixport’s estimation, potential demand for these ETFs could reach as high as $25 billion.