Bitcoin (BTC) News Today: ETF Outflows and $2B BTC Transfer Spark Decline

BTC Slides on US Government BTC Transfers and ETF Flows

On Monday, July 29, BTC declined by 2.12%. Reversing a 0.62% gain from Sunday, July 28, BTC ended the session at $66,810.

US Government’s BTC Transfer Impact

On Monday, July 29, BTC climbed to a session high of $69,916. However, news of the US Government transferring $2 billion in BTC to two new addresses sent BTC crashing to a low of $66,429.

Arkham Intelligence broke the news and provided details of the $2 billion BTC transfer, stating,

“The US Government has split the $2B Bitcoin into two addresses. […]. We believe this represents a 10,000 BTC deposit to an institutional custody/service.”

The US Government sent 10,000 BTC ($669.35 million) to one address and 19,800 BTC ($1.333 billion) to a second address.

The market reaction to the US Government’s $2 billion transfer highlighted the significance of Donald Trump’s weekend pledge. On Saturday, July 27, Trump, speaking at Bitcoin 2024, pledged the US Government would retain all its BTC holdings.

The transfer poured cold water on Trump’s fueled market optimism. However, US BTC-spot ETF flow data for Monday, July 29, also influenced BTC demand.

US BTC-Spot ETF Market OutFlows

On Monday, July 29, the US BTC-spot ETF market could end a three-day inflow streak.

According to Farside Investors,

• On Monday, Grayscale Bitcoin Trust (GBTC) saw net outflows of $54.3 million.
• Bitwise Bitcoin ETF (BITB) had net outflows of $21.3 million.
• Fidelity Wise Origin Bitcoin Fund (FBTC) reported net outflows of $5.9 million.

Excluding flow data for iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market saw total net outflows of $81.5 million. (Previous session: Inflows of $51.8 million).

The US BTC-spot ETF market outflows coincided with the US Government moves and lingering oversupply risk from Mt. Gox’s repayment to its creditors.

On Tuesday, July 30, the US Government held 183,493 BTC ($12.16 billion), while Mt. Gox had 80,128 BTC ($5.31 billion).

Oversupply threats and increased BTC sales volume could signal a BTC fall toward $50,000.

Investors should remain alert. Mt. Gox-related updates, US BTC-spot ETF flow data, and US politics will influence BTC demand. 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 above the 50-day and 200-day EMAs, confirming the bullish price trends.

A BTC break above the $69,000 resistance level would support a return to $70,000. A breakout from $70,000 could signal a move to the all-time high of $73,808.

US politics, US BTC-spot ETF flow data, and BTC supply-related news require consideration.

On the other hand, a drop below $65,000 could signal a fall to the 50-day EMA and the $64,000 support level. Buying pressure could increase at the $64,000 support level. The 50-day EMA is confluent with the support level.

With a 56.36 14-Daily RSI reading, BTC could climb to $70,000 before entering overbought territory.

Ethereum Analysis

ETH hovered below the 50-day EMA while remaining above the 200-day EMA, affirming the bearish near-term but bullish longer-term price signals.

A break above the 50-day EMA would bring the $3,480 resistance level into play. A breakout from the $3,480 resistance level could signal a move toward $3,600.

US ETH-spot ETF market flow trends require consideration.

Conversely, an ETH drop below the $3,244 support level could give the bears a run at the 200-day EMA.

The 14-period Daily RSI reading, 49.19, indicates an ETH fall to the $3,033 support level before entering oversold territory.