Market Insight | Cryptocurrency ETFs Plunge Across the Board as Safe-haven Sentiment Hits the Market, Cryptocurrency Decline Continues

According to the Wise Finance APP, cryptocurrency ETFs across the board plummeted. As of the time of publication, BOS HSK ETH (03009) fell by 27.51% to HKD 17.76; HGI ETH (03179) fell by 27.17% to HKD 5.615; CAM ETH (03046) fell by 27.34% to HKD 5.58. CAM BTC (03042) fell by 15.06% to HKD 6.77.

On the news front, the escalating tensions in the Middle East have led investors to sell off risk assets such as Bitcoin. The downward trend in cryptocurrencies continues, with Bitcoin plummeting by $5004 intraday, briefly falling below $53,000 per coin; Ethereum plunged by 20.00% intraday to $2133 per coin. In addition, there are reports that the U.S. government may dispose of confiscated Bitcoins, and some creditors of the Mt. Gox exchange (which has already collapsed) may sell the recovered tokens, putting pressure on Bitcoin prices.

Some analysts believe that changes in market expectations are a key factor causing fluctuations in Bitcoin prices. After the Federal Reserve announced it would maintain interest rates and hinted at possible rate cuts in the future, the market may have already priced in this positive news. Furthermore, the rate cut by the Bank of England failed to boost market confidence and instead further exacerbated market uncertainty. Last Friday, the unexpected rise in the U.S. unemployment rate to 4.3%, higher than the Fed's year-end forecast, triggered concerns about a potential recession