Bitcoin (BTC) News Today: US Labor Data Could Impact BTC Demand

BTC Eyes $58,000 on BTC-Spot ETF Flows

On Wednesday, August 7, BTC declined by 1.83%. Partially reversing a 3.50% gain from Tuesday, August 6, BTC ended the session at $55,144. BTC tracked the broader crypto market into negative territory as the total market cap fell by 1.74% to $1.906 trillion.

Risk aversion impacted buyer demand for BTC, with the US equity markets ending the session in negative territory. On Wednesday, the Nasdaq Composite Index fell by 1.05%.

However, Wednesday’s US BTC-spot ETF market flow trends may signal a sentiment shift.

US BTC-Spot ETF Market May End 3-Day Outflow Streak

On Wednesday, the US BTC-spot ETF market saw a marked change in flow trends.

According to Farside Investors:

• Grayscale Bitcoin Trust (GBTC) saw net outflows of $30.6 million.
• WisdomTree Bitcoin Fund had net inflows of $10.5 million
• Grayscale Mini Bitcoin Trust (BTC) saw net inflows of $9.7 million.
• Bitwise Bitcoin ETF (BITB) reported net inflows of $3.0 million.

Excluding flow data for iShares Bitcoin Trust (IBIT) and Valkyrie Bitcoin Fund (BRRR), the US BTC-spot ETF market saw total net outflows of $7.4 million, down from 148.6 million on Tuesday, August 6.

Notably, Fidelity Wise Origin Bitcoin Fund (FBTC) ended a seven-day outflow streak. The US BTC-spot ETF market could end a three-day outflow streak if IBIT and BRRR see combined net inflows above $7.4 million.

Expert Views

Bloomberg Intelligence Senior ETF Analyst Eric Balchunas commented on the recent spot ETF flow trends, saying,

“Yes, total flows for group were -$168m but that’s peanuts, about 0.3% of total aum and a 1/3 of that was GBTC. That said, it’s one day, I could see some more outflows this week. I was thinking a couple billion would leave, maybe 5%, which means 95% hung tough which would be strong. So far tho looking much stronger than that.”

Commenting on the significance of Morgan Stanley (MS) approving IBTC and FBTC for its brokers, Balchunas remarked,

“Huge. Getting into wirehouses (and esp their models) is the Promised Land for an ETF issuer.”

US Economic Calendar

Later in the Thursday session, US jobless claims could influence buyer demand for BTC.

Economists forecast continuing jobless claims will slip from 1,877k in the week ending July 20 to 1,870k in the week ending July 27.

Better-than-expected US labor market data could ease immediate fears of a US recession and drive demand for riskier assets. On Friday, BTC tumbled 5.40% as the US unemployment rate rose from 4.1% in June to 4.3% in July.

Weaker labor market conditions could impact wage growth, reduce disposable income, and curb consumer spending. Lower consumer spending could affect the US economy as it contributes over 60% to GDP.

Technical Analysis

Bitcoin Analysis

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

A BTC break above the 200-day EMA would support a move toward the $60,365 resistance level. Furthermore, a breakout from $60,365 could bring the 50-day EMA into play.

Market risk sentiment, US jobless claims, and BTC-spot ETF flow trends require consideration.

On the other hand, a drop below $55,000 could give the bears a run at the $52,884 support level.

With a 38.19 14-Daily RSI reading, BTC could drop to the $52,884 support level before entering oversold territory.

Ethereum Analysis

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

An ETH return to $2,500 would support a move toward the $2,664 resistance level. A breakout from the $2,664 resistance level could give the bulls a run at the $2,800 handle.

US ETH-spot ETF market flow trends also require consideration.

Conversely, an ETH drop below the $2,403 support level could give the bears a run at the $2,124 support level.

The 14-period Daily RSI reading, 27.55, shows ETH sitting in oversold territory. Buyer demand could intensify at the $2,403 support level.