Hong Kong’s cryptocurrency investors remain cautious despite a recent sharp decline in major digital assets, with Bitcoin dropping to its lowest in 10 months at around US$74,500.

The decline, amounting to roughly 40% from its peak above US$126,000, was partly driven by broader macroeconomic pressures, including a sell-off in precious metals.

Ethereum and Solana also fell significantly, with Ethereum down over 15% since January 30.

Experts noted that Hong Kong investors generally view the volatility as typical market behavior, but some questioned Bitcoin’s status as “digital gold,” given its underperformance compared to gold during recent US dollar weakness.

Market sentiment could weaken further if Bitcoin drops below US$70,000, potentially triggering large liquidations, according to analysts.

Meanwhile, Hong Kong’s efforts to develop its digital asset industry continue, with regulators preparing to issue stablecoin licenses in the first quarter and working on new licensing frameworks for OTC trading and custody services.

🔗 Source: South China Morning Post