Bitcoin Gains as Crypto Market Awaits Hong Kong Spot ETF Decision

Bitcoin has recovered and is trading above $65,000 as fears of a global political crisis fade. Bitcoin exchange-traded funds (ETFs) are another hot topic among traders in Hong Kong, where their approval is anticipated later this week or Monday.

The market volatility has subsided following Iran's major drone and missile strike on Israel, which was mostly prevented by air defense systems. As a result, Bitcoin (BTC) is trading above $65,000 and Ethereum (ETH) is back above $3100.  

As markets were rattled by geopolitical tensions over the weekend, Bitcoin fell below $62,000. According to Al-Jazeera, the United States has denied any involvement in a potential Israeli counterattack on Iran, suggesting that tensions have decreased and the situation would not intensify any more.  

The likelihood of Israeli military action against Iran by April 15 is 4% according to traders on Polymarket. There was a sharp decline, falling from 57% in the hours following Iran's missile strike.  

When tensions were at their highest, crypto traders flocked to PAXG, Paxos's tokenized gold digital asset, which was selling at a 20% premium over its analog counterpart.  

Even before the tensions rose, the digital asset market was bracing for a collapse due to the intense selling pressure caused by U.S. tax season.  

Blog author Arthur Hayes predicted that the halving will spark a "raging firesale of crypto assets" since it happens when dollar liquidity is tighter than normal.  

Traders in China will have better access to digital asset exposure when bitcoin and maybe ether ETFs start in Hong Kong this week, according to market watchers. According to Matrixport, these ETFs have the potential to tap into a demand of $25 billion.  

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