Bitcoin (BTC) News Today: Will the US Government and ETF Outflows Sink BTC Prices?

BTC Under Pressure

On Friday, August 9, BTC declined by 1.34%, ending the session at $60,933. BTC partially reversed a 12.00% rally from Thursday, August 8. The total crypto market cap fell by 1.67% to $2.081 trillion.

US BTC-Spot ETF Outflows Test BTC Demand

On Friday, the US BTC-spot ETF market saw total net outflows of $89.7 million.

According to Farside Investors:

• On Thursday, Grayscale Bitcoin Trust (GBTC) saw net outflows of $77.0 million.
• Fidelity Wise Origin Bitcoin Fund (FBTC) had net outflows of $19.8 million.
• Bitwise Bitcoin ETF (BITB) reported net outflows of $18.1 million.

However,

• Grayscale Mini Bitcoin Trust (BTC) saw net inflows of $37.0 million.
• iShares Bitcoin Trust (IBIT) had net inflows of $9.6 million.

The US BTC-spot ETF market saw net outflows despite easing fears of a US economic recession. ETF outflows left BTC trailing the Nasdaq Composite Index.

Nasdaq Composite Index Recovers Monday’s Losses

On Friday, the Nasdaq Composite Index gained 0.51%, cutting the week’s deficit to 0.18%. Significantly, the Nasdaq recovered Monday’s 3.43% sell-off, fueled by the Yen carry trade unwind that left BTC down 6.91%.

US jobless claims data from Thursday, August 8, eased concerns about the US labor market and economy. Better-than-expected claims data could reduce pressure on the Fed to consider an emergency rate cut, which could result in another Yen carry trade unwind.

However, the Nasdaq gains failed to boost BTC demand, with oversupply risk likely influencing BTC price trends.

Oversupply Risk Resurfaces on BTC-Spot ETF Outflows

The US BTC-spot ETF market saw total net outflows for the third session in the week ending August 9. Investors face a possible surge in BTC supply as failed crypto platforms repay their creditors.

On Saturday, August 10, Mt. Gox had 46,146 BTC ($2.79 billion) remaining to repay its creditors. Waning BTC-spot ETF demand and BTC supply from Mt. Gox’s creditors could adversely impact BTC price trends.

The US government may also threaten BTC price stability, currently holding 203,239 BTC ($12.28 billion). In July, BTC retreated from a high of $69,912 following news of the US government transferring $2 billion worth of BTC to two new addresses.

Nevertheless, demand for BTC may surge following the recent FTX court order. On Thursday, August 8, the US courts ordered FTX and Alameda to pay $12.7 billion to its creditors. Creditors could use the repayments to acquire crypto, countering the oversupply risk from the US government and Mt. Gox.

Investors should remain vigilant following the BTC-spot ETF outflows and possible shifts in supply-demand trends. Stay updated with our latest news and analysis to manage exposures to BTC and the broader crypto market.

Technical Analysis

Bitcoin Analysis

BTC hovered above the 200-day EMA while sitting below the 50-day EMA, affirming bearish near-term but bullish longer-term price signals.

A BTC break above the 50-day EMA would support a move toward the $64,000 resistance level. Furthermore, a breakout from the $64,000 resistance level could bring the $69,000 resistance level into play.

BTC supply and demand trends and BTC-spot ETF market-related chatter require consideration.

On the other hand, a drop below the $60,365 support level and the 200-day EMA could signal a fall through $60,000.

With a 46.69 14-Daily RSI reading, BTC could drop to the $55,000 handle before entering oversold territory.

Ethereum Analysis

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

An ETH breakout from the $2,664 resistance level could give the bulls a run at the $3,033 resistance level. A break above the $3,033 resistance level could bring the 200-day and 50-day EMAs into play.

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

Conversely, an ETH fall through $2,500 may signal a fall toward the $2,403 support level.

The 14-period Daily RSI reading, 36.65, indicates an ETH fall to the $2,403 support level before entering oversold territory.