Bitcoin (BTC) News Today: Supply and US ETF Trends Threaten $60,000 Hold

BTC Eyes Sub-$60,000 on Waning Demand for US BTC-Spot ETFs

On Saturday, August 3, BTC declined by 1.29%. Following a 5.40% tumble on Friday, August 2, BTC ended the session at $60,992.

US BTC-Spot ETFs Outflows Impact BTC Price Trends

The US BTC-spot ETF market experienced total net outflows of $80.7 million in the week ending August 2, breaking a four-week inflow streak.

According to Farside Investors:

• Grayscale Bitcoin Trust (GBTC) saw total net outflows of $245.1 million.
• Fidelity Wise Origin Bitcoin Fund (FBTC) had total net outflows of $192.9 million.
• ARK 21Shares Bitcoin ETF (ARKB) reported total net outflows of $122.6 million.
• Bitwise Bitcoin ETF (BITB) had total net outflows of $77.1 million.

However, Grayscale Bitcoin Mini Trust (BTC) and iShares Bitcoin Trust (IBIT) limited the outflows.

• IBIT had total net inflows of $370.2 million while BTC saw total net inflows of $219 million.

The total US BTC-spot ETF outflows happened alongside increasing risks of BTC oversupply.

Oversupply Risk Lingers Despite Mt. Gox and Genesis Trading Balances

This week, Genesis Trading joined Mt. Gox in repaying its creditors. Repayments in BTC, ETH, and other cryptos could increase supply in a falling demand environment. BTC oversupply could signal a drop toward $55,000.

BTC may face intense selling pressure if creditors swamp exchanges with BTC sell-orders. Conversely, a hodl strategy could propel BTC toward $70,000 on easing oversupply risk jitters.

Mt. Gox has $2 billion in BTC (33k BTC) remaining to repay creditors as of Sunday, August 4. Genesis Trading has just $12.83 million in crypto to repay creditors.

However, the US government still holds $12.76 billion in crypto, with BTC and ETH at risk of supply surges. Crypto holdings included:

• BTC: 203,239 ($12.35B);
• ETH: 50,524 ($147.25M); and
• USDT: 121,734,000 ($121.73M).

On July 29, the US government transferred $2 billion in BTC to two addresses, challenging Donald Trump’s crypto pledges. The US government transfer triggered an extended BTC retreat from a July 29 calendar month high of $69,912 to an August 3 low of $60,129.

Investors should remain alert amidst BTC-spot ETF outflows and oversupply risks. Stay updated with our latest news and analysis to manage exposures to BTC and the broader crypto market.

Technical Analysis

Bitcoin Analysis

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

A BTC move above the $64,000 resistance level and the 50-day EMA could bring the $69,000 resistance level into play. However, selling pressure may increase at the $64,000 resistance level. The 50-day EMA is confluent with the resistance level.

BTC supply-demand trend-related news requires consideration.

On the other hand, a break below the $60,365 support level and 200-day EMA could give the bears a run at the $55,000 handle and the July 5 low of $53,591.

With a 38.85 14-Daily RSI reading, BTC could drop to the $55,000 handle before entering oversold territory.

Ethereum Analysis

ETH remained comfortably below the 50-day and 200-day EMAs, affirming the bearish price signals.

A breakout from the $3,033 resistance level could give the bulls a run at the 200-day EMA. A break above the 200-day EMA could bring the $3,244 resistance level into play.

US ETH-spot ETF market flow trends and supply-demand signals require consideration.

Conversely, an ETH break below the $2,800 handle could bring the $2,664 support level into play.

The 14-period Daily RSI reading, 32.53, suggests an ETH drop to the $2,800 handle before entering oversold territory.