Bitcoin (BTC) News Today: US Stats Spark Buyer Demand Amid Fed Rate Cut Bets

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Published: Jun 28, 2024, 03:30 GMT+00:00

Key Points:

Bitcoin (BTC) gained 1.38% on Thursday, June 27, closing the session at $61,691.
US BTC-spot ETF market inflows rekindled buyer demand for BTC as investors awaited crucial US inflation numbers.
On Friday, the US Personal Income and Outlays Report, investor bets on a September Fed rate cut, and US BTC-spot ETF market flow trends require consideration.

US Economic Indicators Fuel Buyer Demand for BTC

On Thursday, June 27, bitcoin (BTC) gained 1.38%. Partially reversing a 1.61% loss from Wednesday, June 26, BTC ended the session at $61,691.

Investor sentiment toward a September Fed rate cut remained resilient before crucial US inflation numbers on Friday, June 28.

US economic indicators supported bets on a September Fed rate cut, driving buyer demand for riskier assets.

Finalized US GDP numbers affirmed the US economy saw growth slow from 3.4% (Q4.2023) to 1.4% (Q1 2024).

Furthermore, while initial jobless claims fell from 239k to 233k in the week ending June 22, the number of insured unemployed reportedly reached the highest level since 2021.

Investors raised bets on a September Fed rate cut in response to the data. According to the CME FedWatch Tool, the probability of the Fed holding interest rates steady in September fell from 37.7% to 35.9% on Thursday.

BTC reacted to the numbers, climbing to a session high of $62,405 before easing back below the $62,000 handle.

BTC reaction to US labor market and GDP numbers.

BTCUSD 30 Minute Chart 280624

How did the US BTC-spot ETF market respond to the rising bets on a September Fed rate cut?

US BTC-Spot ETF Market Eyes a Three-Day Inflow Streak

On Wednesday, June 26, the US BTC-spot ETF market saw total net inflows of $21.4 million, down from $31.0 million on Tuesday, June 25.

Despite seeing total net inflows for a second session, inflows were lackluster compared to historical trends. With one trading session remaining in June, the US BTC-spot ETF market reported total net inflows of $581.7 million. In May, the US BTC-spot ETF market had total net inflows of $2,095.5 million.

Nevertheless, the US BTC-spot ETF market is on target to extend its net inflow streak to three sessions on Thursday.

According to Farside Investors,

Grayscale Bitcoin Trust (GBTC) saw net outflows of $11.4 million after net inflows of $4.3 million on Wednesday.
Bitwise Bitcoin ETF (BITB) had net inflows of $8.0 million.
Fidelity Wise Origin Bitcoin Fund (FBTC) reported net inflows of $6.7 million, down from $18.6 million on Wednesday.
ARK 21Shares Bitcoin ETF (ARKB) and Franklin Bitcoin ETF (EZBC) also had net inflows on Thursday.
Excluding flow data for iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market reported total net inflows of $8.7 million on Thursday, June 27.

While heading toward a three-day inflow streak, inflows remained weak. The looming US inflation numbers likely left investors on a cautious footing.

Softer-than-expected US Core PCE Price Index numbers could cement bets on a September Fed rate cut on Friday. A less dovish Fed rate path would drive buyer demand for BTC and the broader market.

Technical Analysis

Bitcoin Analysis

BTC hovered below the 50-day EMA but sat above the 200-day EMA. The EMAs affirmed the bearish near-term signals but bullish longer-term signals.

A BTC move above the $64,000 resistance level could give the bulls a run at the 50-day EMA. Furthermore, a break above the 50-day EMA could signal a move toward the $69,000 resistance level.

US inflation numbers and BTC-spot ETF flow trends require investor attention on Friday.

On the other hand, a drop below the $60,365 support level could signal a fall to the 200-day EMA.

With a 35.02 14-Daily RSI reading, BTC may fall through the $60,365 support level before entering oversold territory.

BTC Daily Chart sends bearish near-term price signals.

BTCUSD Daily Chart 280624

Ethereum Analysis

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

A breakout from the $3,480 resistance level and the 50-day EMA would support a move to the $3,600 handle. Selling pressure could intensify at the $3,480 resistance level. The 50-day EMA is confluent signal a move toward the $3,835 resistance level.

US ETH-spot ETF-related chatter needs consideration.

Conversely, an ETH break below the $3,244 support level could give the bears a run at the 200-day EMA and the $3,033 support level.

The 14-period Daily RSI reading, 44.97, indicates an ETH break below the $3,244 support level before entering oversold territory.

ETH Daily Chart sends bearish near-term price signals.

ETHUSD Daily Chart 280624

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.