Bitcoin (BTC) News Today: BTC Reacts to ETF Flows and Fed Chair Testimony

iShares Bitcoin Trust Saw Record Net Inflows on Tuesday

On Wednesday, BTC gained 3.66%. Partially reversing a 6.40% slide from Tuesday, BTC ended the session at $66,172.

BTC-spot ETF market flows drove buyer demand for BTC, with total net inflows of $648.8 million on Tuesday. Total net inflows increased despite BTC ending the Tuesday session down 6.40%.

According to BitMEX Research, Grayscale Bitcoin Fund (GBTC) saw net outflows fall from $368.0 million on March 4 to $332.5 million on March 5. Investors expect GBTC outflows to continue to trend lower as the effects of Genesis Global Holdco LLC liquidations of GBTC shares subside.

While GBTC saw net outflows reduce, iShares Bitcoin Trust (IBIT) saw record net inflows of $788.3 million on March 5. IBIT was the main contributor to net inflows, with Fidelity Wise Origin Fund (FBTC) seeing net inflows fall from $404.6 million (March 4) to $125.6 million (March 5).

BTC-Spot ETF Market Flows for March 6 Offer Early Price Support

BTC-spot ETF market flow for March 6 provided early Thursday BTC price gains. According to Farside Investors, GBTC saw net outflows of $276.2 million, continuing to trend lower. Significantly, FBTC saw net inflows rise to $205.7 million, ensuring total net inflows for the BTC-spot ETF market on March 6.

Excluding flows for IBIT and BRRR, the BTC-spot ETF market saw net inflows of $10.0 million. Another IBIT inflow record would deliver record net inflows for the broader market.

BTC-spot ETF market flows provided direction early and late in the Wednesday session. However, Fed Chair Powell contributed to the gains during testimony on Capitol Hill.

Fed Chair Powell Delivers Crypto Market Support

The Fed Chair talked about rate cuts later in the year while highlighting dependence on data for future policy decisions.

Weaker-than-expected US labor market data on Wednesday suggested the Fed could cut rates sooner rather than later.

BTC reacted to the US labor market data and Fed Chair testimony, rising from an afternoon low of $64,706 to a high of $67,567 before easing back.

Beyond bitcoin, Dogecoin (DOGE) and shiba inu (SHIB) had mixed Wednesday sessions. DOGE gained 2.34%, while SHIB slid by 5.40% as investors continued locking in profits from the 60% SHIB rally on Monday.

Technical Analysis

Bitcoin Analysis

BTC remained well above the 50-day and 200-day EMAs, affirming bullish price signals.

A BTC return to the Tuesday high of $69,064 would bring the all-time high of $69,276 and $70,000 into play.

BTC-spot ETF market-related news remains a focal point.

Conversely, a fall below the $65,000 handle could signal a drop toward the $59,176 support level.

The 14-Daily RSI reading, 72.41, shows BTC sitting in overbought territory. Selling pressure could intensify at the Tuesday high of $69,064.

Ethereum Analysis

ETH sat well above the 50-day and 200-day EMAs, sending bullish price signals.

An ETH break above the Wednesday high of $3,902 would bring the $4,000 handle into play.

ETH-spot ETF-related updates remain an investor consideration.

However, an ETH break below the $3,683 support level would give the bears a run at the $3,412 support level.

The 14-period Daily RSI, at 81.43, shows ETH in overbought territory. Selling pressure could intensify at the Wednesday high of $3,902.