Bitcoin (BTC) News Today: BTC Faces Pressure from Mt. Gox and ETF Outflows

BTC Drops Again: Analyzing Market Trends and Mt. Gox Impact

On Wednesday, July 31, BTC fell by 2.39%. Following a 0.83% loss on Tuesday, July 30, BTC ended the session at $64,671. Despite the month-end losses, BTC ended July up 3.08%.

Mt. Gox Transfers: What Does It Mean for BTC Supply?

On Wednesday, Arkham Intelligence reported a significant Mt. Gox transfer, saying,

“Last night Mt. Gox addresses moved 33.96K BTC ($2.25B) to addresses we believe are most likely BitGo. […]. BitGo is the 5th and final custodian working with the Mt. Gox Trustee to return funds to creditors. After these transfers, Mt. Gox now holds 46.16K BTC ($3.06B).”

The Mt. Gox transfer followed the US government’s $2 billion BTC transfer to 2 wallets.

BTC could come under intense selling pressure if Mt. Gox creditors decide to sell their BTC to lock in sizeable profits. Mt. Gox collapsed in February 2014, when BTC sat below $600.

ETF Outflows: Is the Demand for BTC-Spot ETFs Waning?

Recent US BTC-spot ETF market flow trends raised concerns about BTC-spot ETF demand.

On Tuesday, July 30, the US BTC-spot ETF market saw total net outflows of $18.3 million, ending a four-day inflow streak.

Flow trends for Wednesday were also lackluster. According to Farside Investors,

• On Wednesday, Grayscale Bitcoin Trust (GBTC) saw zero net flows.
• Fidelity Wise Origin Bitcoin Fund (FBTC) had net outflows of $31.6 million.
• ARK 21Shares Bitcoin ETF (ARKB) Bitwise Bitcoin ETF (BITB) also had net outflows.

Excluding flow data for iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market saw total net outflows of $20.7 million.

Why BTC Trading Volumes are Key to Future Price Movements

BTC trading volumes could play a crucial role following the recent Mt. Gox transfers. If creditors retain their BTC, demand could outstrip supply, supporting a BTC break above the all-time high of $73,808.

Market conditions are improving, with Fed Chair Powell putting a September Fed rate cut on the table during the FOMC press conference.

Technical Analysis

Bitcoin Analysis

BTC remained above the 50-day and 200-day EMAs, confirming the bullish price trends.

A BTC breakout from $65,000 could give the bulls a run at the $69,000 resistance level. A break above the $69,000 resistance level could support a move to the all-time high of $73,808.

US BTC-spot ETF flow data and BTC supply-related news require consideration.

On the other hand, a drop below the 50-day EMA and the $64,000 support level could bring the $60,365 support level into play.

With a 48.64 14-Daily RSI reading, BTC could drop to the $60,365 support level before entering oversold territory.

Ethereum Analysis

ETH sat below the 50-day EMA while hovering above the 200-day EMA, sending the bearish near-term but bullish longer-term price signals.

A break above the $3,244 resistance level would support a move toward the 50-day EMA. A breakout from the 50-day EMA could signal a move toward the $3,480 resistance level.

US ETH-spot ETF market flow trends require consideration.

Conversely, an ETH drop below the 200-day EMA could bring the $3,033 support level into play.

The 14-period Daily RSI reading, 44.07, indicates an ETH fall to the $3,033 support level before entering oversold territory.