Bitcoin and Ethereum surged following Hong Kong's announcement that they are now eligible assets for investment visas.
Cryptocurrency Market Reacts to Hong Kong News
Bitcoin and Ethereum prices surged sharply after Hong Kong approved them as eligible assets under its new capital investment entrant scheme. Bitcoin rose 5.3% to $56,789, and Ethereum climbed 4.8% to $3,210 within an hour of the announcement. Trading volumes also spiked: BTC/USD on Binance reached $1.2 billion, a 300% increase compared to the previous hour, and ETH/USD on Coinbase tripled to $450 million.
Analysis of Technical Indicators
Technical indicators reinforced the bullish sentiment: Bitcoin breached its $55,000 resistance level with its Relative Strength Index (RSI) reaching 72, signaling possible overbought conditions. Ethereum similarly broke past its $3,100 resistance with an RSI at 68. Despite this, traders caution that such high RSI levels might precede short-term corrections.
Market Implications and Risks
Along with Bitcoin and Ethereum, AI-related cryptocurrencies like SingularityNET (AGIX) and Fetch.AI (FET) also surged. Sentiment analysis revealed a 15% increase in positive mentions linking AI and crypto topics. However, experts highlight risks: global regulatory clarity is fragmented, and Hong Kong's policy does not override China's crypto bans. RSI levels also suggest potential market overheating, prompting profit-taking.
Hong Kong's move to position itself as a crypto hub underscores its ambition to compete regionally. However, sustained growth will depend on regulatory adaptation and broader adoption.
