Bitcoin (BTC) News Today: US BTC-Spot ETF Market Sinks BTC in Reaction to the Fed

US BTC-spot ETF Market Flow Trends Amidst Fed Jitters

Bitcoin (BTC) declined by 3.65% on Wednesday (May 1). Following a 5.02% slide on Tuesday (April 30), BTC ended the session at $58,917. Significantly, BTC last closed out a session at sub-$60,000 on February 27.

The FOMC interest rate decision and press conference delivered a choppy end to a negative bitcoin session.

US BTC-spot ETF market flow trends for Tuesday (April 30) set the tone for the Wednesday session. According to Farside Investors, the US spot ETF market saw total net outflows of $161.6 million.

• iShares Bitcoin Trust (IBIT) saw zero net flows for the fifth session.
• Fidelity Wise Origin Bitcoin Fund (FBTC) recorded net outflows for the fourth session.
• Grayscale Bitcoin Trust (GBTC) saw net outflows of $93.2 million, up from the previous day’s $24.7 million.

Pre-Fed investor jitters impacted buyer demand for US BTC-spot ETFs. However, market conditions deteriorated late into the Wednesday session.

The FOMC Interest Rate Decision, the Press Conference, and the US BTC-Spot ETF Market

On Wednesday (May 1), the Fed left interest rates unchanged at a target range of 5.25-5.50%. While in line with market expectations, the policy decision drove buyer demand for BTC and the broader crypto market.

The FOMC press conference was also crypto-market friendly. Fed Chair Powell highlighted the lack of progress in bringing inflation to the 2% target. Nevertheless, Powell poured cold water on expectations of a Fed interest rate cut. The press conference was not as hawkish as the markets had feared.

The US BTC-spot ETF market reacted to the press conference and tweaks to the Fed rate path.

According to Farside Investors, the US BTC-spot ETF market saw net outflows of $511.7 million on Wednesday (May 1), excluding spot ETF flow data for IBIT, Invesco Galaxy Bitcoin ETF (BTCO), and Valkyrie Bitcoin Fund (BRR).

• GBTC saw net outflows of $167.4 million, up from $93.2 million on April 30.
• FBTC recorded net outflows of $191.1 million, the most marked since launching on January 11. Significantly, FBTC saw net outflows for the fifth session.
• ARK 21Shares Bitcoin ETF (ARKB) saw net outflows of $98.1 million.
• Six of the seven ETFs with up-to-date flow data saw net outflows on Wednesday (May 1).

Bloomberg Intelligence ETF Analyst James Seyffart reacted to the flow data and third-party sources for IBIT numbers, saying,

“Andddd IBIT has its first outflow day of its existence. Ruff day to be a bitcoin ETF.”

According to Tree News, IBIT saw net outflows of $36.9 million on Wednesday (May 1).

There was no trading on the Hong Kong BTC and ETH-spot ETF markets. The HK markets were closed for the Labor Day holiday.

Technical Analysis

Bitcoin Analysis

BTC sat comfortably 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.

A BTC breakout from the $60,365 resistance level would give the bulls a run at the 50-day EMA and the $64,000 resistance level. Selling pressure could intensify at the $64,000 resistance level. The 50-day EMA is confluent with the resistance level.

On Thursday, US labor market data and BTC-spot ETF flow data from HK and the US need consideration.

Conversely, a BTC fall through the $55,000 handle could give the bears a run at the $52,884 support level.

With a 31.71 14-Daily RSI reading, BTC could drop to the $55,000 handle before entering oversold territory.

Ethereum Analysis

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

An ETH break above the $3,033 resistance level would support a move to the 50-day EMA and the $3,244 resistance level. Selling pressure may increase at the $3,244 resistance level. The 50-day EMA is confluent with the resistance level.

Conversely, an ETH fall through the 200-day EMA would give the bears a run at the $2,664 support level.

The 14-period Daily RSI reading of 37.17 indicates an ETH drop to the 200-day EMA before entering oversold territory.