The price of Bitcoin has taken a sharp dive, plummeting nearly 5% from its intraday high of $64,734. This sudden drop is attributed to the underwhelming response to the launch of Hong Kong's Bitcoin and Ether ETFs, which saw a paltry trading volume of $12 million on their first day, a staggering 383 times lower than the U.S. Bitcoin ETFs debut. This lackluster performance led to a surge in shorting, causing the price to plummet to $61,451, triggering a broader selloff in the crypto market.

The consequences of this selloff were severe, with a staggering $150 billion in value lost as the crypto market cap dropped to $2.24 trillion. The liquidation of positions was widespread, with over $205 million in losses across the crypto market, including $145 million in long positions and $60 million in short positions. This resulted in the liquidation of over 66,000 traders, with the largest single liquidation order occurring on Binance, where someone sold ETH valued at $5.03 million.

The market is bracing for the Federal Reserve's policy decision and non-farm payrolls data due later this week. Oil prices have risen 0.23%, while gold prices have fallen 0.71%. The US dollar index has climbed toward 106, and the US 10-year Treasury yield has jumped to a 6-month high. This indicates pressure on Bitcoin, which moves opposite to these indicators. However, the Q2 2024 Treasury refunding announcement could potentially turn the tables in favor of Bitcoin.

Crypto analyst Rekt Capital warns that Bitcoin is still in a "danger zone" and could potentially fall below $60,000. He also suggests a high possibility of a rally starting mid-May. Historically, Bitcoin has performed Pre-Halving Retraces 14-28 days before the Halving, and this cycle is no different. The market is waiting with bated breath for the Federal Reserve meeting on May 1, where Chairman Jerome Powell's announcement could have a significant impact on the crypto and stock markets.