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Bitcoin (BTC) News Today: BTC Nears $60K on Fed Rate Cut Hopes, ETF Inflows
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Key Points:
- Bitcoin (BTC) gained 1.71% on Saturday, July 13, ending the session at $58,945.
- Surging bets on a September Fed rate cut, and US BTC-spot market flow trends drove buyer demand for BTC.
- On Sunday, July 14, BTC supply and demand dynamics and hopes of a September Fed rate cut will influence buyer appetite for BTC.
In this article:
Bitcoin Market Trends
On Saturday, July 13, BTC rose by 1.71%. Following a 0.99% gain on Friday, July 12, BTC ended the session at $58,945.
US BTC-Spot ETF Market Inflows Surge
Investor concerns about an oversupply of BTC sent BTC to a July 5 low of $53,591. However, surging demand for US BTC-spot ETFs countered the effects of the German government’s BTC sales.
In the week ending July 12, the US BTC-spot ETF market saw total net inflows of $1.05 billion. Significantly, the US BTC-spot ETF market reported the highest inflows since $1.83 billion in the week ending June 7.
According to Farside Investors,
- Grayscale Bitcoin Trust (GBTC) saw total net outflows of $35.3 million in the week ending July 12.
- iShares Bitcoin Trust (IBIT) had total net inflows of $522.5 million, up from $187.2 million the previous week.
- Fidelity Wise Origin Bitcoin Fund (FBTC) reported total net inflows of $358.1 million compared with $61.5 million in the previous week.
- Seven US BTC-spot ETF issuers saw total net inflows in the week ending July 12.
The surge in US BTC-spot ETFs coincided with the German government completing its BTC haul from the Movie2k seizure. German police seized $2 billion from the operators of the film piracy website Movie2k.
German Government Receives BTC Donations
On Friday, Arkham Intelligence confirmed that the German government completed its BTC sales.
On Saturday, the value of the German government’s BTC wallet increased from $1.87 to $171.92. According to Arkham Intelligence, BTC holders donated $171.92 equivalent in BTC to the German government.
As of Sunday, July 14, the German government’s BTC holding stood at 0.005 BTC, equivalent to $287.53. The German government’s holdings are unlikely to influence BTC price trends unless there is a substantial increase.
The German government’s BTC sales and surge in demand for US BTC-spot ETFs coincided with rising bets on a September Fed Rate cut.
Will Fed Chair Powell Greenlight a September Fed Rate Cut?
On Monday, July 15, Fed Chair Powell is on the calendar to speak. Recent US inflation figures fueled investor bets on a September Fed rate cut. According to the CME FedWatch Tool, the chances of the Fed cutting interest rates in September jumped from 77.7% on July 5 to 96.3% on July 12.
Fed interest rate cuts could reduce borrowing costs and drive buyer demand for riskier assets. The US BTC-spot ETF market and BTC would likely benefit from a more dovish Fed rate path.
A continued surge in demand for US BTC-spot ETFs could signal a BTC break above $60,000.
While the US BTC-spot ETF market influenced BTC price trends, the ETH-spot ETF approvals remained pending.
Will the SEC Approve the US ETH-Spot ETFs?
The SEC approved 19b-4 applications for US ETH-spot ETFs in May. However, the SEC has not approved the S-1 forms, meaning US ETH-spot ETF issuers cannot launch their ETFs.
On Friday, July 12, Bloomberg Intelligence Senior ETF Analyst Eric Balchunas commented on the pending approvals, saying,
“Yeah, rn it’s all quiet on the Western Front re eth ETFs. Nada from SEC this week. […]. Every issuer is ready. Docs are ready. It’s like a rain delay in baseball. Gotta just wait. Maybe things will move fast next week. We’ll see…”
Nevertheless, the crypto community remained optimistic that the SEC will approve the S-1 forms. ETF Store President Nate Geraci said,
“It appears the SEC is playing the spot eth ETF S-1s similar to the 19b-4s… Extremely tight-lipped. Still think approval next week. Absolutely no reason for delay.”
ETH advanced by 1.34% on Saturday, July 13, closing at $3,178.
Investors should remain alert despite the recent gains. Monitor real-time data and expert commentary to adjust your trading strategies accordingly. Stay up-to-date with our latest news and analysis to manage crypto market risk.
Technical Analysis
Bitcoin Analysis
BTC hovered above the 200-day EMA while remaining below the 50-day EMA. The EMAs sent bearish near-term but bullish longer-term price signals.
A BTC breakout from the $60,365 resistance level could signal a move to the 50-day EMA. Furthermore, a break above the 50-day EMA could bring the $69,000 resistance level into play.
On Sunday, sentiment toward BTC supply and demand and the Fed rate path require consideration.
On the other hand, a break below the 200-day EMA may signal a drop below $55,000.
With a 45.75 14-Daily RSI reading, BTC may fall to the $52,884 support level before entering oversold territory.
Ethereum Analysis
ETH remained above the 200-day EMA while sitting below the 50-day EMA. The EMAs affirmed the bearish near-term but bullish longer-term price signals.
A move above the $3,244 resistance level could bring the 50-day EMA into play. Furthermore, an ETH break above the 50-day EMA could give the bulls a run at the $3,480 resistance level.
US ETH-spot ETF market-related updates also require consideration.
Conversely, an ETH break below the 200-day EMA and $3,033 support level could signal a fall toward the $2,800 handle.
The 14-period Daily RSI reading, 45.78, suggests an ETH decline to $2,800 before entering oversold territory.
About the Author
Bob Masonauthor
With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.
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