Bitcoin (BTC) News Today: Navigating BTC Volatility Amid Hawkish Fed and ETF Outflows

Rate Hike Threats Linger Before the US CPI Report

Bitcoin (BTC) ended the Saturday (May 11) session flat at $60,878. On Friday, BTC slid by 3.52%. Significantly, BTC continued avoiding sub-$60,000.

Uncertainty about the Fed interest rate trajectory continued to impact buyer demand for BTC. Despite the losses in the week, BTC moved with a $1,000 price range. On Friday, US BTC-spot ETF market outflows highlighted the market sensitivity to US economic data and FOMC member chatter.

Upward trends in consumer inflation expectations spooked investors. FOMC member concerns about monetary policy being restrictive enough to return inflation to the 2% target also affected buyer demand for BTC.

US producer prices on Tuesday and the US CPI Report on Wednesday will likely dictate the Fed rate path and BTC price trends. Hotter-than-expected US inflation figures could fuel speculation about a Fed rate hike and sink riskier assets.

While the US BTC-spot ETF market reacts to the US economic calendar, uncertainty about the future of the US ETH-spot ETF market lingers.

US ETH-Spot ETF Market Speculation Mounts

On Friday (May 10), Fox Business Journalist Eleanor Terrett shared news of ARK Invest and 21Shares amending their ETH-spot ETF application. The co-issuers of the ARK 21Shares Ethereum ETF reportedly removed text relating to staking.

However, Bloomberg Intelligence Senior ETF Analyst Eric Balchunas poured cold water on investor hopes of SEC engagement with the issuers, saying,

“Hmmmm. Interesting. While it may seem like this is them getting their docs in shape based on SEC comments (which would be good news) there hasn’t been any comments. So it’s prob either a Hail Mary or maybe trying to give SEC one less thing to use in their rejection. Not sure (yet).”

The deadlines for the SEC to approve or disapprove three ETH-spot ETF applications are looming.

The SEC has until May 23 to decide on the VanEck Ethereum ETH and May 24 for the ARK 21Shares Ethereum ETF. The deadline for the Hashdex Nasdaq Ethereum ETF is May 30. Grayscale recently withdrew its application for the Grayscale Ethereum Futures Trust, which also had a May 30 deadline.

ETH ended Saturday (May 11) up 0.12% to $2,913.

Technical Analysis

Bitcoin Analysis

BTC hovered below the 50-day EMA while remaining above the 200-day EMA, sending bearish near-term but bullish longer-term price trends.

A BTC move through the 50-day EMA and the $64,000 resistance level could signal the possibility of a BTC return to the $69,000 resistance level. A break above the $69,000 resistance level would support a move toward the $73,808 all-time high.

Investor sentiment toward the Fed rate path and the influence on buyer demand for US BTC-spot ETFs need consideration.

Conversely, a BTC break below the $60,365 support level could give the bears a run at sub-$58,000 levels.

With a 43.62 14-Daily RSI reading, BTC could fall through the $58,000 handle before entering oversold territory.

Ethereum Analysis

ETH remained below the 50-day EMA while holding above the 200-day EMA. The EMAs confirmed the bearish near-term but bullish longer-term price trends.

An ETH breakout from the $3,033 resistance level would support a move to the 50-day EMA. A break above the 50-day EMA could give the bulls a run at the $3,244 resistance level.

Conversely, an ETH fall through the 200-day EMA would bring the $2,664 support level into play.

The 14-period Daily RSI reading of 39.53 indicates an ETH drop below the 200-day EMA before entering oversold territory.