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Bitcoin (BTC) News Today: ETF Inflows Signal Strong BTC Market Outlook
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Key Points:
- Bitcoin (BTC) advanced by 0.65% on Saturday, July 20, ending at $67,087.
- US BTC-spot ETF market flow trends boosted BTC demand.
- On Sunday, July 21, investors should look ahead to another pivotal week for BTC and ethereum (ETH).
In this article:
Market Overview
On Saturday, July 20, BTC advanced by 0.65%. Following a 4.10% rally on Friday, July 19, BTC closed at $67,087.
US BTC-Spot ETF Market Counters Oversupply Concerns
On Friday, the US BTC-spot ETF market reported total net inflows of $383.6 million. Significantly, the spot ETF market extended its net inflows streak to eleven sessions.
Fidelity Wise Origin Bitcoin Fund (FBTC) and iShares Bitcoin Trust (IBIT) did the heavy lifting on Friday. According to Farside Investors, FBTC and IBIT saw net inflows of $141.0 million and 116.2 million, respectively.
ETF Store President Nate Geraci commented on the significance of the US BTC-spot ETF market, stating,
“Now 900,000+ bitcoin held by US-listed ETFs… 4.3% of total btc supply. Approx $60bil in assets. $17 bil in net new inflows since January launch.”
The inflow streak signaled improving demand. A bullish BTC price outlook may reduce the number of Mt. Gox creditors planning to offload their BTC.
Mt.Gox and 141,000 BTC Repayment
On Tuesday, July 16, Mt. Gox transmitted 48,641 BTC to Kraken, commencing the process of repayments to creditors. Kraken will fund creditor accounts within 7-14 days.
Mt. Gox will return about $9 billion in BTC to its creditors after collapsing in February 2014.
US BTC-Spot ETF Market Demand Pivotal
US BTC-spot ETF market flow trends could be crucial, as was the case during the German government’s BTC sales.
BTC supply and demand trends could dominate the crypto news wires in the coming weeks. However, the anticipated launch of the US ETH-spot ETF market also requires consideration.
ETH-Spot ETF Market Launch Imminent
The markets expect ETH-spot ETF issuers to launch their ETFs next week.
Bloomberg Intelligence ETF Analyst James Seyffart stated,
“Okay everyone. Here are the details for the #Ethereum ETFs that we expect to launch next week.”
Notably, seven issuers have waived fees at launch to lure buyers.
ETF Store President Nate Geraci quoted legal firm Foley and Lardner LLP, stating,
“The most important development from approval order was SEC heavily implying ETH is commodity & not security. Approval order demonstrates crypto assets can start life as security & transition to commodity over time.”
The launch of the US ETH-spot ETF market is significant for several reasons, including,
- Removing uncertainty about the classification of ETH as a commodity
- Paving the way for alt coin-spot ETFs, including an XRP-spot ETF.
On Saturday, ETH advanced by 0.37%, following a 2.35% gain on Friday, to end the session at $3,520.
Investors should remain alert. Next week, US economic indicators may influence the Fed rate path and the appetite for riskier assets. 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 remained well above the 50-day and 200-day EMAs, affirming the bullish price signals.
A BTC break above the $69,000 resistance level would support a return to $70,000. A breakout from $70,000 could give the bulls a run at the March 2024 all-time high of $73,808.
US BTC-spot ETF market-related chatter and Mt. Gox-related updates require consideration.
On the other hand, a drop below the $64,000 support level could signal a fall toward the 50-day EMA. A break below the 50-day EMA may give the bears a run at the $60,365 support level.
With a 64.67 14-Daily RSI reading, BTC may return to $70,000 before entering overbought territory.
Ethereum Analysis
ETH sat comfortably above the 50-day and 200-day EMAs, sending bullish price signals.
A break above $3,600 would support a move toward the $3,835 resistance level. A breakout from the $3,835 resistance level could give the bulls a run at $4,000.
US ETH-spot ETF market-related updates also require consideration.
Conversely, an ETH drop below the $3,480 support level may signal a fall toward the 50-day EMA. A fall through the 50-day EMA could give the bears a run at the $3,244 support level.
The 14-period Daily RSI reading, 59.62, indicates an ETH move through the $3,835 resistance level before entering overbought 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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