Inflation and war concerns drive Bitcoin down to $65K, approval of Hong Kong ETF becomes the focus

Inflation concerns remain unresolved. Amid rumors of potential conflict between Iran and Israel, the US stock market experienced a widespread decline yesterday. Bitcoin briefly dropped below 65K. With the recent stagnation in the trading volume of the US Bitcoin spot ETF, investors may need to look to the approval of the Hong Kong Bitcoin spot ETF. According to sources from Bloomberg, Hong Kong is expected to approve the issuance of Bitcoin and Ethereum spot ETFs as early as next Monday.

Inflation and War Concerns Lead to U.S. Stock Market Decline

Yesterday, the University of Michigan's Consumer Sentiment Index in the U.S. fell more than expected, while consumers' expectations for both long and short-term inflation climbed, highlighting Americans' disappointment with high prices. Susan Collins, President of the Boston Federal Reserve Bank, also stated in an interview on the same day that policymakers will postpone the schedule for interest rate cuts until inflation approaches the Fed's target. She believes that there is no need to quickly lower borrowing costs.

Tensions in the Middle East escalated, with The Wall Street Journal citing sources saying that Iran is expected to launch a direct attack on Israeli territory within the next 48 hours. The VIX panic index surged to its highest level since 2024, with gold hitting a historic high of $2,419.79 per ounce during trading. U.S. stocks closed lower, oil prices rose, and bonds saw a slight increase.

Bitcoin Dropped to Above 65K, Approval of Spot ETF in Hong Kong Expected Next Week

Yesterday, Grayscale's GBTC still saw an outflow of $166 million, despite Grayscale CEO Michael Sonnenshein recently stating that GBTC had started to reach a certain level of balance, and some expected outflows of funds, whether from institutions selling off or potential transfer trades, have basically become a thing of the past. However, investors still choose to leave when the fees are much higher than those of other competitors.

Grayscale CEO: GBTC net outflows are gradually balancing, and fee reductions are expected

Bitcoin also dropped to above 65K last night. In the short term, there seems to be limited support below, and when the recent flow of U.S. Bitcoin spot ETFs fails to boost the trend of Bitcoin, investors may have to wait for the approval of the Bitcoin spot ETF in Hong Kong. According to sources from Bloomberg, Hong Kong is expected to approve Bitcoin and Ethereum spot ETFs as soon as next Monday.