Bitcoin (BTC) News Today: Fed Rate Cut Hopes and US ETF Inflows Fuel the Rally

BTC Revisits $61,000

On Tuesday, August 13, BTC rallied 2.10% to close at $60,658 after advancing by 1.08% on Monday, August 12. The total crypto market cap gained 1.28%, ending the session with a total market cap of $2.088 trillion.

US BTC-Spot ETF Inflows Signal Shift in Demand

On Tuesday, the US BTC-spot ETF market extended its net inflow streak to two sessions.

According to Farside Investors:

• On Tuesday, Grayscale Bitcoin Trust (GBTC) saw net outflows of $28.6 million.
• ARK 21Shares Bitcoin ETF (ARKB) reported net outflows of $6.1 million.

However,

• Fidelity Wise Origin Bitcoin Fund (FBTC) had net inflows of $22.6 million.
• Bitwise Bitcoin ETF (BITB) reported net inflows of $16.5 million.

Excluding flow trends for iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market saw total net inflows of $4.4 million.

US BTC-spot ETF inflows and BTC gains coincided with a positive session for the US equity markets. On Tuesday, the Nasdaq Composite Index rallied 2.43% on softer US producer prices for July. Significantly, final demand services prices declined by 0.2%, supporting expectations of multiple 2024 Fed rate cuts.

Rising investor bets on multiple Fed rate cuts and improving demand for US BTC-spot ETFs pushed BTC to a Tuesday high of $61,621.

Expert Views on the US BTC-Spot ETF Market

Bloomberg Intelligence Senior ETF Analyst Eric Balchunas commented on the top 11 list of Bitcoin hodlers, saying,

“Didn’t realize US ETFs are on track to pass Satoshi in bitcoin held in October. BlackRock alone is already #3 and on pace to be #1 late next year, and will likely stay there for a very long time”

On Monday, Balchunas discussed the significance of the US BTC-spot ETF market, stating,

“I think if you take the ETFs out of the picture, the price of Bitcoin is like $20,000. Because it was 30,000 […] when Blackrock (BLK) filed. They started to go up because, oh, BlackRock’s coming in. Then they launched, there was little silver news, but it hung tough. Now it went up a lot because of the flows. […] You unwind all that, you’re at 30k. But you still have Mt. Gox, and somebody’s other, in Germany, and who’s there to buy it? So, I think the ETFs should be seen as nothing short of a godsend.”

US Economic Calendar

On Wednesday, August 14, the crucial US CPI Report could influence US BTC-spot ETF market flows and BTC price trends.

Softer-than-expected US inflation could cement multiple Q4 2024 Fed rate cuts, possibly boosting demand for riskier assets.

Economists expect the annual core inflation rate to fall from 3.2% in June to 3.1% in July.

BTC Price Trends

Softer US inflation figures could support a BTC move toward $65,000. However, better-than-expected US jobless data on Thursday, August 15, could ease fears of a US recession and signal a BTC move toward $70,000.

Conversely, a higher inflation a numbers and a spike in US jobless claims could send BTC toward $55,000.

Technical Analysis

Bitcoin Analysis

BTC sat above the 200-day EMA while remaining below the 50-day EMA. The EMAs sent bearish near-term but bullish longer-term price signals.

A BTC return to $62,000 would support a move toward the 50-day EMA. A breakout from the 50-day EMA could bring the $64,000 resistance level into play.

US inflation data and US BTC-spot ETF market flow trends need consideration on Wednesday.

On the other hand, a drop below the $60,365 support level could give the bears a run at the 200-day EMA. A fall through the 200 could bring the $55,000 handle into play.

With a 48.03 14-Daily RSI reading, BTC may drop to the $55,000 handle before entering oversold territory.

Ethereum Analysis

ETH hovered well below the 50-day and 200-day EMAs, confirming the bearish price trends.

An ETH breakout from $2,800 could signal a move toward the $3,033 resistance level. Furthermore, a break above the $3,033 resistance level could give the bulls a run at the 50-day and 200-day EMAs.

US ETH-spot ETF market flow trends also require consideration.

Conversely, an ETH break below the $2,664 support level could bring the $2,403 support level into play.

The 14-period Daily RSI reading, 41.96, indicates an ETH drop to the $2,403 support level before entering oversold territory.