• Bitcoin and Ethereum prices surged following Hong Kong’s announcement, with BTC rising 5.3% and ETH climbing 4.8% in just one hour.
• Trading volumes skyrocketed, as BTC/USD on Binance reached $1.2 billion, showing a 300% increase compared to the previous hour’s activity.

Hong Kong has approved Bitcoin and Ethereum as eligible assets under its New Capital Investment Entrant Scheme, triggering immediate price surges. Bitcoin rose 5.3% to $56,789, while Ethereum climbed 4.8% to $3,210 within an hour of the announcement.

Trading volumes spiked, with BTC/USD on Binance hitting $1.2 billion—a 300% hourly increase—and ETH/USD on Coinbase tripling to $450 million.

The policy shift allows investors to include cryptocurrencies in applications for residency, expanding access to digital asset markets. Local trading pairs mirrored global trends: BTC/HKD on OKEx rose 6.2% to $58,123, and ETH/HKD increased 5.9% to $3,390.

On-chain data showed active Bitcoin addresses growing 10% to 850,000, while Ethereum addresses rose 7% to 600,000 within 24 hours. ETHNews analysts link these jumps to renewed investor interest in holding crypto assets.  

Technical indicators reinforced bullish sentiment

Bitcoin breached its $55,000 resistance level, with its Relative Strength Index (RSI) hitting 72—above the 70 threshold signaling overbought conditions. Ethereum similarly broke past $3,100 resistance, its RSI reaching 68.

Despite high volumes sustaining throughout the day—$1 billion for BTC and $400 million for ETH—traders cautioned that overextended RSI levels might precede short-term corrections.

The announcement also lifted AI-related cryptocurrencies. SingularityNET (AGIX) and Fetch.AI (FET) surged 8% and 7%, respectively, by 2 p.m. UTC. AGIX/BTC volume on KuCoin jumped 250% to $25 million, while FET/BTC volume rose 200% to $20 million.

Social media sentiment analysis revealed a 15% increase in positive mentions linking AI and crypto, suggesting algorithmic traders capitalized on the regulatory news.

Market observers note two implications. First, Hong Kong’s move legitimizes crypto as an investment vehicle, potentially attracting capital from mainland China and Southeast Asia. Second, the rally’s concentration in Bitcoin, Ethereum, and AI tokens reflects selective institutional positioning rather than broad market participation.

However, risks persist. Regulatory clarity remains fragmented globally, and Hong Kong’s policy does not override China’s strict crypto bans. Additionally, the RSI levels for Bitcoin and Ethereum suggest overheating, which could prompt profit-taking.

The decision marks Hong Kong’s latest effort to position itself as a crypto hub amid regional competition. While immediate price action reflects optimism, sustained growth depends on broader adoption and regulatory alignment.

For now, traders eye AI tokens and derivatives markets for volatility-driven opportunities, as the policy change reshapes short-term strategies in Asia’s financial corridors.

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