Bitcoin (BTC) News Today: US Jobs Report and Spot ETF Trends in Focus

Bitcoin (BTC) and the broader crypto market faced extended selling pressure on the Fourth of July holiday. Can the US Jobs Report and US BTC-spot ETF market flow trends stem the tide?

Bitcoin (BTC) Slides Below $57,000 as Supply vs. Demand Dynamics Hurt

On Thursday, July 4, BTC tumbled 5.18%. Following a 3.04% slide on Wednesday, July 3, BTC closed the session at $57,097. Significantly, BTC ended the day at sub-$58,000 for the first time since February.

Concerns about an increased supply of BTC impacted buyer demand for BTC. Investors continued to react to the news of Mt. Gox planning to give creditors approximately 141,000 BTC, equivalent to about $8.5 billion.

Moreover, Mt. Gox is not the only supply issue the crypto market must face.

The US government still has a stash of BTC it confiscated from the Silk Road case. In 2020, the US government seized about 69,370 BTC related to the Silk Road case. While it is unclear how much of the US stash remains, more sales could be on the horizon to test the supply-demand dynamics.

Mt. Gox Offload Coincides with German Government Sales

Alongside the reports of Mt. Gox returning BTC to creditors was news of the German government offloading a BTC stash.

The German government reportedly sent approximately 1,300 BTC to exchanges on Thursday. Furthermore, the German government still holds over 40,000 BTC, according to Akham, which could hit exchanges anytime.

The surge in BTC supply partially countered the effects of the Bitcoin halving event in April. However, demand could surge if the Fed begins cutting interest rates. With BTC the bellwether of the crypto market, US BTC-spot ETF market flow trends could be pivotal.

US Labor Market Data and the BTC-Spot ETF Market

On Friday, July 5, the US Jobs Report could influence investor expectations of a September Fed rate cut. Softer-than-expected US average hourly earnings and a higher unemployment rate could cement a September rate cut.

A more dovish Fed rate path may fuel buyer demand for BTC. However, US BTC-spot ETF market flow trends remain a concern. The BTC-spot ETF market extended its net outflow streak to three weeks in the week ending June 28. Another week of outflows would be another red flag for BTC. Since launching in January, the BTC-spot ETF market has been a robust source of demand for BTC.

With the US Jobs Report and supply vs. demand issues in focus, investors must remain vigilant. 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 effectively.

Technical Analysis

Bitcoin Analysis

BTC sat below the 50-day and 200-day EMAs, sending bearish price signals.

A BTC break above the 200-day EMA would support a move to the $60,365 resistance level. A breakout from the $60,365 resistance level could give the bulls a run at the $64,000 resistance level and the 50-day EMA. However, selling pressure could intensify at the $64,000 resistance level. The 50-day EMA is confluent with the resistance level.

The US Jobs Report, BTC supply side-related news, and US BTC-spot ETF market flow data require consideration.

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

With a 29.34 14-Daily RSI reading, BTC is sitting in oversold territory. Buying demand could intensify at the $55,000 handle.

Ethereum Analysis

ETH hovered below the 50-day and 200-day EMAs, sending bullish price signals.

A break above the 200-day EMA would support a move toward the $3,244 resistance level. Furthermore, a breakout from the $3,244 resistance level could give the bulls a run at the 50-day EMA.

US ETH-spot ETF-related chatter needs consideration.

Conversely, an ETH break below the $3,033 support level could signal a drop toward the $2,664 support level.

The 14-period Daily RSI reading, 30.67, shows ETH on the border with the oversold territory. Buying interest could intensify at the $3,033 support level.