Bitcoin (BTC) News Today: BTC Gains Amid ETF Inflows and Economic Jitters

BTC Slides to $62,000 Before Rebounding to $65,000

On Thursday, August 1, BTC advanced by 0.99%. Partially reversing a 2.39% loss from Wednesday, July 31, BTC ended the session at $65,313. Significantly, BTC dipped to a session low of $62,304 before recovering.

US BTC-Spot ETF Inflows Drive BTC Demand

The US BTC-spot ETF market avoided total net outflows on Wednesday, July 31, with total net inflows of $0.3 million.

Grayscale Bitcoin Mini Trust (BTC) launched on Wednesday with net inflows of $18.0 million. iShares Bitcoin Trust (IBIT) had net inflows of $21.0 million, countering outflows from the broader spot ETF market.

On Thursday, August 1, the US BTC-spot ETF market could see a second session of total net inflows.

According to Farside Investors,

• Grayscale Bitcoin Trust (GBTC) saw net outflows of $71.3 million.
• Fidelity Wise Origin Bitcoin Fund (FBTC) had net outflows of $48.4 million.
• ARK 21Shares Bitcoin ETF (ARKB) Bitwise Bitcoin ETF (BITB) reported net outflows of $22.4 million and $20.7 million, respectively.
• Grayscale Bitcoin Mini Trust (BTC) saw net inflows of $191.0 million.

Excluding flow data for IBIT, the US BTC-spot ETF market saw total net inflows of $24.7 million. IBIT last reported net outflows on May 1.

Grayscale Bitcoin Mini Trust Fees Draw Investors

Bloomberg Intelligence Senior ETF Analyst Eric Balchunas attributed the inflows to lower fees, stating,

“Grayscale’s Mini-Me Bitcoin ETF $BTC launches today.. with $1.7b and category-low fee of 0.15%. Imp to recognize how crazy cheap 15bps is- about 10x cheaper than spot ETFs in other countries and other vehicles. This is what the Terrordome does to fund cos. Come in at 1.5% end up at 0.15%, like going from country club to the jungle. But that’s why all the flows are here, paradise for investors.”

Geopolitical Tensions in the Middle East Intensify

On Friday, August 2, BTC and the broader crypto market saw morning losses. Geopolitical tensions in the Middle East intensified, impacting buyer demand for riskier assets.

Rising threats of a war in the Middle East could influence BTC and crypto price trends.

BTC was down 1.43% to $64,379 on Friday morning, while the total crypto market cap fell by 1,24% to $2.255 trillion.

US Economic Growth Fears and the US Jobs Report

On Thursday, the Nasdaq Composite Index tumbled 2.30% over fears of a hard US landing.

US continuing jobless claims increased from 1,844k in the week ending July 13 to 1,877k in the week ending July 20. A deterioration in US labor market conditions could impact consumer spending and the US economy. Private consumption contributes over 60% to the US economy.

The weak figures followed Wednesday’s FOMC press conference, where Fed Chair Powell said he did not want labor market conditions to worsen.

On Friday, August 2, the US Jobs Report could intensify fears of a hard US landing. An unexpected rise in the US employment rate and softer wage growth figures could affect US BTC-spot ETF flows and BTC demand.

Expert Views on the US Economy

AMP Head of Investment Strategy and Chief Economist Shane Oliver commented on the US economic data, stating,

“More weak US data => hi recession risk. […]. Initial jobless claims +14k, continuing +33k..could be impacted by factory shutdowns but trend is up.”

Technical Analysis

Bitcoin Analysis

BTC hovered above the 50-day and 200-day EMAs, sending bullish price trends.

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

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

On the other hand, a break below the 50-day EMA and the $64,000 support level could signal a drop to the $60,365 support level.

With a 48.59 14-Daily RSI reading, BTC could fall to the $60,365 support level before entering oversold territory.

Ethereum Analysis

ETH remained below the 50-day EMA while holding above the 200-day EMA, affirming the bearish near-term but bullish longer-term price signals.

A breakout from the $3,244 resistance level could give the bulls a run at the 50-day EMA. A break above the 50-day EMA could bring the $3,480 resistance level into play.

US ETH-spot ETF market flow trends require consideration.

Conversely, an ETH break below the 200-day EMA could signal a drop to the $3,033 support level.

The 14-period Daily RSI reading, 41.04, suggests an ETH drop to the $3,033 support level before entering oversold territory.