Bitcoin (BTC) News Today: Market Eyes the SEC, ETF Dynamics, and US Inflation

US Consumer Inflation Expectations, the FED, and the BTC-Spot ETF Market

Bitcoin (BTC) gained 1.00% on Sunday (May 12), ending the week down 3.93% to $61,485. Despite the weekly loss, BTC avoided sub-$60,000.

However, BTC moved within a $1,300 bandwidth, with hawkish Fed chatter and concerns about US inflation limiting the upside.

It could be a pivotal week for the US BTC-spot ETF market and BTC. US producer and consumer price trends will likely dictate the Fed interest rate trajectory.

In recent speeches, FOMC members discussed whether monetary policy was restrictive enough to bring inflation to the 2% target. Hotter-than-expected inflation numbers could fuel speculation about a Fed interest rate hike. A more hawkish Fed rate path may impact buyer demand for BTC-spot ETFs and BTC.

While investors grappled with the uncertainty about the Fed rate path, ethereum (ETH) remained a talking point.

Hope Lingers for a US ETH-Spot Market

Over the weekend, ETFStore President Nate Geraci shared several updates about progress toward a US ETH-spot ETF market.

Discussing the Grayscale decision to withdraw its ETH filing and the ARK amendment, Geraci said,

“I’m def not here to stoke hopium, but interesting that Grayscale perplexingly yanked ’33 Act eth futures ETF 19b-4 filing & ARK now submitting S-1 amendment on spot eth ETF to not incl staking… Maybe SEC just doesn’t want clown show around this like they had w/ spot btc ETF.”

Geraci added,

“All that said, I spoke directly w/ a prospective spot eth ETF issuer this week who was extremely pessimistic on approval… So either he’s an excellent poker player or SEC isn’t engaging.”

However, it was not all doom and gloom for investors vying for a US ETH-spot ETF market.

Fox Business journalist Eleanor Terrett said she had discovered planned meetings between ETH-spot ETF issuers and SEC staff, which could change the narrative.

While issuers plan to meet with SEC staff, the Consensys lawsuit also needs consideration. In April, Consensys filed a lawsuit against the SEC, contesting the SEC classification of ETH as a security. A Consensys win could pave the way for a US ETH-spot ETF market.

Interestingly, Nate Geraci referenced comments from SEC Commissioner Hester Peirce over the weekend, saying,

“Still can’t shake these comments in January from SEC Commissioner Hester Peirce… This was after spot btc ETF approval.”

In January, SEC Commissioner Peirce said that the SEC should not take criticism from the US courts before getting things right. Commissioner Peirce was referencing the Grayscale win on appeal that paved the way for the US BTC-spot ETF market. The presiding Judge described the SEC as arbitrary and capricious.

Technical Analysis

Bitcoin Analysis

BTC sat below the 50-day EMA while holding comfortably above the 200-day EMA, affirming the bearish near-term but bullish longer-term price trends.

A BTC break above the 50-day EMA and the $64,000 resistance level would support a move toward the $69,000 resistance level. A breakout from the $69,000 resistance level would bring the $73,808 all-time high into play.

US economic indicators and US BTC-spot ETF flow trends need consideration.

Conversely, a BTC fall through the $60,365 support level could signal a drop below the $58,000 handle.

With a 44.77 14-Daily RSI reading, BTC may drop below the $58,000 handle before entering oversold territory.

Ethereum Analysis

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

An ETH break above the $3,033 resistance level would give the bulls a run at the 50-day EMA. A move through the 50-day EMA could bring the $3,244 resistance level into play.

Conversely, an ETH break below the 200-day EMA could signal a drop to the $2,664 support level.

The 14-period Daily RSI reading of 39.30 suggests an ETH fall to the 200-day EMA before entering oversold territory.