Bitcoin (BTC) News Today: Reactions to Powell and US BTC-Spot ETF Inflows

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Published: Jul 10, 2024, 04:29 GMT+00:00

Key Points:

Bitcoin (BTC) rallied 2.32% on Tuesday, July 9, ending the session at $58,081.
Investors reacted favorably to testimony from Fed Chair Powell, who eased fears of a surprise Fed rate hike.
On Wednesday, July 10, investors should monitor supply-related news and US BTC-spot ETF flow trends as the US CPI Report looms.

US BTC-Spot ETF Market Extends Inflow Streak to Three

On Tuesday, July 9, BTC rallied 2.32%. Following a 1.53% gain on Monday, July 8, BTC ended the session at $58,081. Notably, BTC avoided falling below $56,000 for the first time in three sessions.

The US BTC-spot ETF market saw net inflows for the third successive session, driving buyer demand for BTC.

According to Farside Investors,

On Tuesday, Grayscale Bitcoin Trust (GBTC) had net outflows of $37.5 million.
Bitwise Bitcoin ETF (BITB) reported net outflows of $4.7 million.
Fidelity Wise Origin Bitcoin Fund (FBTC) saw net inflows of $91.0 million.
ARK 21Shares Bitcoin ETF (ARKB) had net inflows of $43.3 million.
Excluding iShares Bitcoin Trust (IBIT) flow data, the US BTC-spot ETF market saw total net inflows of $95.4 million. On Monday, the total net inflows were $294.8 million.

The US BTC-spot ETF market and BTC responded positively to Fed Chair Powell’s testimony on Capitol Hill.

Powell eased fears of a surprise Fed rate hike, signaling confidence that inflation would return to the 2% target. He also highlighted that labor market conditions had cooled.

BTC responded favorably to the testimony, recovering from an initial dip to reach a session high of $58,312.

BTC reacts to Fed Chair Powell Testimony.

BTC and Fed Chair Powell Testimony

Nevertheless, the chances of a September Fed rate cut remained relatively steady, with the US CPI Report looming on Thursday.

According to the CME FedWatch Tool, the probability of a September Fed rate cut fell from 75.6% to 73.3% on Tuesday, July 9.

Investor sentiment toward a Fed rate cut, and US BTC-spot ETF flow trends contributed to the BTC gains on Tuesday. However, investors remained cautious about possible supply surges.

German Government Holdings Draw the Crypto Spotlight

Arkham Intelligence reported the latest German government offload of BTC on Tuesday, stating,

“In the past 3 hours, the German Government has sent 6306.9 BTC ($362.12M) to Kraken, Cumberland, 139Po (likely institutional deposit/OTC service) and address bc1qu.”

However, the German government also received BTC from exchanges. Arkham Intelligence noted,

“Since yesterday’s movements, the German Government received 5366 BTC back from exchanges including Kraken, Bitstamp, and Coinbase.”

Despite the receipt, BTC and the broader crypto market remain at risk of another German government BTC sale.

According to Arkham Intelligence, the German government’s BTC holdings stood at 23,964 BTC, equivalent to $1.38 billion.

German Government BTC Holdings

In the near term, US BTC-spot ETF market trends and US economic indicators could be pivotal. Softer-than-expected US inflation numbers on Thursday and US BTC-spot ETF market inflows could calm investor worries about excess supply.

On the supply side, German and US government BTC sales plans and Mt. Gox repayments to creditors remain focal points.

Considering the market dynamics, investors should stay alert. Monitor real-time data and expert commentary to adjust your trading strategies accordingly. Stay informed with our latest updates and insights to navigate the crypto market.

Technical Analysis

Bitcoin Analysis

BTC hovered below the 50-day and 200-day EMAs, affirming the bearish price signals.

A BTC breakout from the 200-day EMA could give the bulls a run at the $60,365 resistance level. Furthermore, a BTC break above the $60,365 resistance level could signal a move to the 50-day EMA.

On Wednesday, BTC supply side news and US BTC-spot ETF market flow trends need consideration.

On the other hand, a break below $55,000 could signal a drop to the $52,884 support level.

With a 37.58 14-Daily RSI reading, BTC could fall below the $55,000 handle before entering oversold territory.

BTC Daily Chart sends bearish price signals.

BTCUSD Daily Chart 100724

Ethereum Analysis

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

A break above the $3,033 resistance level and the 200-day EMA could signal a move to the $3,244 resistance level.

US ETH-spot ETF market-related updates also require consideration.

Conversely, an ETH return to the $2,800 handle could signal a drop to the $2,664 support level.

The 14-period Daily RSI reading, 36.09, suggests an ETH break below $2,800 before entering oversold territory.

ETH Daily Chart sends bearish price signals.

ETHUSD Daily Chart 100724

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.