On Wednesday (June 5), bitcoin (BTC) advanced by 0.75%. Following a 2.34% rally on Tuesday (June 4), BTC ended the session at $70,979.
US ADP private payroll figures fueled investor expectations of a September Fed rate cut. The ADP reported a 152k increase in private payrolls in May after a 188k rise in April. Economists expected an increase of 175k..
Furthermore, the US ISM Services PMI increased from 49.4 to 53.8 in May. While service sector activity rebounded, input prices softened, with firms continuing to reduce jobs, albeit at a less marked pace.
The global financial markets reacted to the numbers, with 10-year US Treasury yields falling 1.22%.
According to the CME FedWatch Tool, the probability of the Fed standing pat in September fell from 33.0% to 30.2% on Wednesday.
The rising investor bets on a September Fed rate cut drove buyer demand for US BTC-spot ETFs.
According to Farside Investors,
Increased demand for US BTC-spot ETFs put the US-ETH-spot ETF applications in focus.
On Wednesday, ethereum (ETH) ended the session up 1.41% to $3,866. Nevertheless, uncertainty about the timing of an ETH-spot ETF launch left ETH at sub-$4,000.
SEC Chair Gary Gensler spoke to CNBC on Wednesday, warning it could take time to approve the pending S-1 forms. Nevertheless, the SEC Chair did say that ETH had been traded on the CME Futures for over three years, raising hopes of an eventual launch.
BTC sat above the 50-day and 200-day EMAs, confirming the bullish price trends.
A BTC breakout from the $71,500 handle would support a move to the $73,808 all-time high.
US BTC-spot ETF market flow data, US economic indicators, and SEC activity need consideration.
Conversely, a BTC break below the $69,000 support level could give the bears a run at the 50-day EMA.
With a 63.63 14-Daily RSI reading, BTC could return to the all-time high of $73,808 before entering overbought territory.
ETH hovered comfortably above the 50-day and 200-day EMAs, affirming the bullish price signals.
An ETH return to the $4,000 handle could give the bulls a run at the March high of $4,091.
US ETH-spot ETF-related news needs consideration.
Conversely, an ETH break below the $3,835 support level could bring the $3,700 handle into play.
The 14-period Daily RSI reading, 66.61, suggests an ETH return to $4,000 before entering overbought territory.
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.