Bitcoin (BTC) News Today: Fed Rate Path Impact on BTC Trends Ahead of US Data

Uncertainty About a September Fed Rate Cut Leaves BTC at Sub-$70,000

On Saturday (May 25), bitcoin (BTC) gained 1.06%. After advancing by 0.90% on Friday (May 24), BTC ended the session at $69,291.

US economic indicators from the Friday session continued to drive buyer demand for BTC and the broader crypto market. The softer-than-expected US inflation expectation numbers for May stoked a Friday recovery from sub-$67,000.

The US BTC-spot ETF market saw a positive response to the inflation expectation figures, with total net inflows reaching $251.9 million on Friday, up from $107.9 million on Thursday (May 23).

Despite the hawkish FOMC Meeting Minutes and hotter-than-expected US S&P Global Services PMI, the US BTC-spot ETF market saw total net inflows of $1,056.7 million in the week ending May 24. Total net inflows were the highest since the week ending March 15 (+$2,565.7 million).

Nevertheless, BTC continued to fall short of the $70,000 handle. Uncertainty about a September Fed rate cut could impact BTC price trends before the US Personal Income and Outlays Report (Friday, May 31).

Better-than-expected personal income/spending and hotter-than-expected inflation numbers could refuel speculation about a Fed rate hike. A more hawkish Fed rate path could kickstart a broad-based crypto sell-off.

However, ethereum (ETH) spot ETF market-related news may counter the effects of a more hawkish Fed rate path.

Approvals of the S1 forms and the launch of ETH-spot ETFs would pave the way to a crypto-spot ETF market. Issuers may want to assess US ETH-spot ETF flow trends before filing applications for altcoin-spot ETFs. Weak demand for US ETH-spot ETFs could delay filings for altcoin-spot ETFs until after the US Presidential Election.

Technical Analysis

Bitcoin Analysis

BTC remained above the 50-day and 200-day EMAs, affirming the bullish price signals.

A BTC return to the $70,000 handle would support a move toward the $73,808 all-time high.

US crypto-spot ETF-related news and the upcoming US economic calendar need consideration.

Conversely, a BTC break below the $69,000 support level would bring the 50-day EMA and the $64,000 support level into play.

With a 59.81 14-Daily RSI reading, BTC could climb to the all-time high of $73,808 before entering overbought territory.

Ethereum Analysis

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

An ETH break above the $3,835 resistance level would support a move to the $4,000 handle. A return to the $4,000 handle could give the bulls a run at the March high of $4,091.

US ETH-spot ETF market news needs consideration.

Conversely, an ETH break below the $3,650 handle could signal a drop to the $3,480 support level.

The 14-period Daily RSI reading, 68.61, indicates an ETH move through the $3,835 resistance level before entering overbought territory.