Bitcoin (BTC) News Today: Fed Rate Cut Bets and Spot ETF Flows Signal Rise to $73,000

Investor Bets on a September Fed Rate Cut Drive Demand for BTC-Spot ETFs

On Monday (June 3), bitcoin (BTC) advanced by 1.55%. Following a 0.11% gain on Sunday (June 2), BTC closed the day at $68,840.

US manufacturing PMI numbers for May raised investor expectations of a September Fed rate cut. The more influential ISM Manufacturing PMI fell from 49.2 to 48.7, contrasting with the US S&P Global Manufacturing PMI, which increased from 50.0 to 51.3.

According to the CME FedWatch Tool, the probability of a 25-basis point September Fed rate cut increased from 47.0% to 51.3% on Monday. Moreover, the chances of a 50-basis point September Fed rate cut rose from 7.5% to 8.6%.

The PMI numbers and influence on sentiment toward the Fed rate path drove buyer demand for US BTC-spot ETFs.

According to Farside Investors,

• Grayscale Bitcoin Trust (GBTC) saw zero net flows on Monday (June 3) compared with net outflows of $124.3 million on Friday (May 31).
• Fidelity Wise Origin Bitcoin Fund reported net inflows of $77.0 million, up from $5.9 million on Friday.
• Bitwise Bitcoin ETF (BITB) and ARK 21Shares Bitcoin ETF (ARKB) had net inflows of $14.7 million and $10.7 million, respectively.
• Excluding flow data for iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market saw total net inflows of $105.1 million.

On Monday, the US BTC-spot ETF market could extend its net inflow streak to fifteen sessions.

Nevertheless, investors should consider US labor market data and service sector PMI numbers that will impact sentiment toward the Fed rate path more.

The US JOLTs Job Openings Report and ADP Nonfarm Employment Change numbers will be in focus on Tuesday (June 4) and Wednesday (June 5). Weaker labor market conditions could raise investor bets on a September rate cut and drive buyer demand for riskier assets.

Furthermore, ISM Services PMI numbers (June 5) will also move the dial. The services sector accounts for over 70% of the US economy.

Technical Analysis

Bitcoin Analysis

BTC sat comfortably above the 50-day and 200-day EMAs, confirming the bullish price trends.

A BTC return to $70,000 could signal a move to the $73,808 all-time high.

US economic data, US BTC-spot ETF market flow data, and SEC activity need consideration.

Conversely, a BTC drop below the $69,000 support level could give the bears a run at the 50-day EMA.

With a 58.01 14-Daily RSI reading, BTC could return to the all-time high of $73,808 before entering overbought territory.

Ethereum Analysis

ETH remained well above the 50-day and 200-day EMAs, confirming the bullish price trends.

An ETH move above the $3,835 resistance level would bring the $4,000 handle into play. A return to the $4,000 handle could signal a rise to the March high of $4,091.

US ETH-spot ETF-related news needs consideration.

Conversely, an ETH fall through the $3,700 handle could give the bears a run at the $3,480 support level.

The 14-period Daily RSI reading, 62.87, suggests an ETH return to $4,000 before entering overbought territory.