Bitcoin (BTC) News Today: Will US BTC-Spot ETFs Counter the Mt. Gox Effect?

The US BTC-spot ETF market highlighted a resilient source of demand for bitcoin (BTC), allowing dip buyers to enter at sub-$60,000 levels.

Can Fed rate cut bets fuel demand for spot ETFs and counter the imminent supply from Mt Gox?

Bitcoin (BTC) Steadies on Resilient Demand for US BTC-Spot ETFs

On Saturday, July 6, BTC gained 2.76%. Reversing a 0.62% loss from Friday, July 5, BTC closed at $58,309 and ended a four-day losing streak.

The US BTC-spot ETF market signaled a pickup in demand for BTC, easing investor concerns about Mt. Gox repaying creditors with BTC.

For perspective, Mt. Gox plans to repay its creditors with over 141,000 BTC ten years after collapsing. Investors will receive BTC at a significantly higher value than at the time of the collapse in 2014. The markets expect Mt. Gox creditors to cash in after ten years of waiting. The flood of BTC into the crypto market may counter the April Bitcoin Halving and impact the supply-demand dynamic.

Will all the creditors sell their BTC despite sitting well below its all-time high?

Mt Gox creditors were early BTC investors, buying into blockchain and digital assets long before the total crypto market cap peaked at a November 2021 all-time high of $3.009 trillion. The majority could retain their BTC, hoping for a break above $100,000.

Despite fears of a BTC oversupply across the exchanges, the US BTC-spot ETF market had a positive week ending July 5. The US BTC-spot ETF market had total net inflows of $238.6 million, ending a three-week net outflow streak.

Rising investor bets on a September Fed rate cut fueled buyer demand for US BTC-spot ETFs.

US Jobs Report and Fed Rate Cut Bets Drive Demand

On Friday, the US Jobs Report fueled investor bets on a September Fed rate cut. Softer wage growth and a higher unemployment rate suggested the Fed may need to begin considering labor market conditions. A deteriorating US labor market could retrigger investor fears of a US hard landing.

Arch Capital Group Global Chief Economist Parker Ross reacted to the US Jobs Report, stating:

“It’s now looking increasingly likely that we’re approaching an inflection point for the labor market and the Fed should sit up and take notice.”

For context, the US unemployment rate increased for the third consecutive month to 4.1%, the highest since November 2021.

However, avoiding a hard landing and a more dovish red path may drive buyer demand for US BTC-spot ETFs and counter the Mt. Gox effect.

BTC-spot ETF investors may consider the anticipated Mt. Gox supply a buying opportunity. A surge in BTC supply could give BTC-spot ETF buyers an attractive entry price in a Fed monetary policy easing cycle.

However, it could be a challenging weak ahead, with the US CPI Report and Fed Chair Powell Testimony on focus.

Fed Chair Powell could offer optimism toward a Fed rate cut during testimony on Capitol Hill (Tues/Wed).

Nevertheless, a hotter-than-expected US CPI Report (Thurs) could sink investor bets on a September Fed rate cut and buyer demand for BTC.

Economists forecast the US core inflation rate to remain at 3.4% in June, well above the 2% target.

In conclusion, the US economic calendar may influence buyer demand for US BTC-spot ETFs. Rising bets on a September Fed rate cut could counter a supply surge from Mt. Gox repayments to creditors.

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, confirming the bearish price trends.

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 50-day EMA and the $64,000 resistance level. However, selling pressure could intensify at the $64,000 resistance level. The 50-day EMA is confluent with the resistance level.

The Fed rate path, its influences on the US BTC-spot ETF market, and supply trends need consideration.

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

With a 34.31 14-Daily RSI reading, BTC could fall to the $55,000 handle before entering oversold territory.

Ethereum Analysis

ETH remained below the 50-day and 200-day EMAs, affirming the bullish price signals.

A breakout from the 200-day EMA could signal a move to the $3,244 resistance level.

US ETH-spot ETF-related chatter also needs consideration.

Conversely, an ETH break below the $3,033 support level could bring the $2,664 support level into view.

The 14-period Daily RSI reading, 32.05, suggests an ETH drop below the $3,033 support level before entering oversold territory.