Bitcoin (BTC) News Today: Can US BTC-Spot ETFs Counteract Mt. Gox Supply?

The US BTC-spot ETF market eased investor concerns about potential oversupply from the Mt. Gox repayments. Can the US BTC-spot ETF market fuel a reversal of recent BTC losses?

US BTC-Spot ETF Market Eases Concerns about Oversupply

On Monday, July 8, BTC advanced by 1.53%, partially reversing a 4.12% loss from Sunday, July 7. BTC closed the session at $56,765. Significantly, BTC fell below the $55,000 level for the second time since February 27 before recovering.

US BTC-spot ETF market inflows contributed to the gains.

According to Farside Investors,

• On Monday, Grayscale Bitcoin Trust (GBTC) saw net inflows of $25.1 million. GBTC last reported net inflows on June 26.
• Fidelity Wise Origin Bitcoin Fund (FBTC) had net inflows of $61.5 million after net inflows of $117.4 million on Friday, July 5.
• On Monday, Bitwise Bitcoin ETF (BITB) and ARK 21Shares Bitcoin ETF (ARKB) reported net inflows of $11.0 million and $8.4 million, respectively.
• Excluding the data from iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market saw total net inflows of $107.6 million.

US BTC-spot ETF market inflows were crucial amidst an expected surge in supply. Mt. Gox plans to repay over 141,000 BTC to its creditors. Investors expect the creditors to sell their BTC after waiting more than ten years since the exchange collapsed in February 2014.

Rising bets on a September Fed interest rate cut likely fueled buyer demand for US BTC-spot ETFs.

US Economic Indicators Signal September Fed Rate Cut

On Monday, US consumer inflation expectations fell from 3.2% to 3.0% in June. If consumers believe prices will fall, they may delay purchasing goods. A fall in consumer spending could dampen demand-driven inflation and support a September Fed rate cut.

According to the CME FedWatch Tool, the probability of a September Fed rate cut stood at 75.6% on Monday, up from 65.6% on Monday, July 1.

Later in the Tuesday session, Fed Chair Powell will testify on Capitol Hill. His views on the labor market, inflation, and the timing of a Fed rate cut could affect buyer demand for US BTC-spot ETFs and BTC. However, US inflation numbers on Thursday, July 11, could be crucial.

Softer-than-expected US inflation figures could raise investor expectations of a September Fed rate cut and demand for BTC.

In Summary

US BTC-spot ETF inflows calmed investor concerns about oversupply from Mt Gox. However, market sentiment regarding the Fed interest rate trajectory also influenced buyer appetite for US BTC-spot ETFs and BTC. Weaker-than-expected US inflation numbers and US BTC-spot ETF inflows should counter the effects of the Mt. Gox supply.

Considering the market dynamics, investors should remain alert. Monitor real-time data and expert commentary to adjust your trading strategies accordingly. Stay informed with our latest updates and insights to navigate the crypto market.

Technical Analysis

Bitcoin Analysis

BTC sat below the 50-day and 200-day EMAs, sending bearish price signals.

A BTC break above the 200-day EMA would support a move to the $60,365 resistance level. Additionally, a BTC breakout from the $60,365 resistance level could give the bulls a run at the 50-day EMA.

Fed Chair Powell, Mt. Gox-related news, and US BTC-spot ETF market flow trends require consideration on Tuesday, July 9.

On the other hand, a drop below the $52,884 support level could give the bears a run at the $50,000 handle.

With a 33.47 14-Daily RSI reading, BTC may fall to the $54,000 handle before entering oversold territory.

Ethereum Analysis

ETH remained below the 50-day and 200-day EMAs, affirming the bullish price signals.

A breakout from the $3,033 resistance level and the 200-day EMA could give the bulls a run at the $3,244 resistance level.

US ETH-spot ETF-related updates also need consideration.

Conversely, an ETH fall through the $2,800 handle would bring the $2,664 support level into play.

The 14-period Daily RSI reading, 35.19, indicates an ETH drop below $2,800 before entering oversold territory.