Bitcoin (BTC) Targets $65K as US BTC-Spot ETF Inflows Rise on SEC Testimony

Bitcoin Targets $65,000

On Tuesday, September 24, BTC advanced by 1.46%, recovering a 0.37% loss from the previous session, closing at $64,276. Significantly, BTC rose for the seventh session in eight, bringing $65,000 into view.

US BTC-spot ETF Market Extends Inflow Streak to Four Sessions

On Monday, September 23, the US BTC-spot ETF market saw total net inflows of $4.5 million. Fidelity Wise Origin Bitcoin Fund (FBTC), iShares Bitcoin Trust (IBIT), and Grayscale Bitcoin Mini Trust (BTC) offset net outflows from Grayscale Bitcoin Trust (GBTC).

Demand for US BTC-spot ETFs improved on Tuesday, September 24, extending the inflow streak to four sessions. According to Farside Investors:

• Bitwise Bitcoin ETF (BITB) reported net inflows of $17.4 million on Tuesday.
• FBTC saw net inflows of $16.8 million, while BTC had inflows of $2.9 million.
• Notably, GBTC reported zero net flows.
• Excluding IBIT, the US BTC-spot ETF market registered total net inflows of $37.1 million on Tuesday, September 24.

Notably, IBIT saw net inflows for only the second time since August 26. News of BlackRock (BLK) requiring Coinbase (COIN) to process BTC withdrawals within 12 hours may have supported IBIT demand. Last week, BlackRock filed an amendment to address concerns that Coinbase was acquiring paper BTC or BTC IOUs.

US Consumer Confidence Tests BTC Demand

On Tuesday, the US CB Consumer Confidence Index slid from 105.6 in August to 98.7 in September. Consumers cited labor market conditions as a concern, possibly supporting multiple Q4 2024 Fed rate cuts. However, a drop below 100 suggests weaker consumer spending, possibly impacting the US Economy. BTC briefly fell to an afternoon session low of $62,764.

SEC Testimony Highlights Regulatory Uncertainty

Meanwhile, the crypto community responded favorably to a US House Committee on Financial Services committee hearing. House Majority Whip Tom Emmer grilled SEC Chair Gensler, referencing the Debt Box case and the SEC’s previous clarification of cryptos as securities.

Emmer also spotlit Vice President Kamala Harris’s recent support for digital assets, saying,

“It’s been recently reported that Vice President Harris has finally said she’d craft clear rules of the road for the digital asset space if she becomes president. Is this your approach too sir? Or do you think she’s rebuking you because she doesn’t think you’ve done a good enough job establishing these clear rules over the last three years of her administration?”

To which Chair Gensler replied,

“I think there’s laws in place. If Congress wishes to change them, they’ll change them, but we are enforcing the laws.”

Bipartisan support for clearer crypto regulation could boost investor confidence and drive demand for digital assets.

US BTC-spot ETF Market Flows, US Economic Indicators, and the Fed Rate Path

On Wednesday, September 25, US housing market data could influence BTC demand. Economists predict new home sales will slide by 5.1% in August, following a 10.6% surge in July.

A larger-than-expected fall may fuel speculation about a hard US economic landing. Economists consider the US housing sector as a barometer for the US economy. A deteriorating housing market could affect consumer confidence, spending, and the economy.

Beyond the stats, FOMC member comments on the US economy and timing for interest rate cuts also need consideration. Support for further rate cuts amid expectations of a soft landing could drive buyer demand for riskier assets, including BTC and BTC-spot ETFs.

Investors should remain alert, with upcoming US economic data likely to affect buyer demand for BTC and the broader market. Stay updated with our latest news and analysis to manage your BTC and crypto exposures.

Technical Analysis

Bitcoin Analysis

BTC remains well above the 50-day and 200-day EMAs, confirming bullish price trends.

A return to $65,000 could support a move toward $67,500. Furthermore, a breakout from $67,500 may bring the $69,000 resistance level into play.

Investors should consider US economic data, Fed comments, and US BTC-spot ETF market flows.

Conversely, a drop below the $64,000 support level could give the bears a run at the 50-day EMA and the $60,365 support level.

With a 65.43 14-day RSI reading, BTC may climb to $67,500 before entering overbought territory.

Ethereum Analysis

ETH hovers above the 50-day EMA while remaining below the 200-day EMA, affirming bullish near-term but bearish longer-term price signals.

An ETH breakout from the $2,664 resistance level could give the bulls a run at the 200-day EMA. A break above the 200-day EMA would support a move toward the $3,033 resistance level.

US ETH-spot ETF market-related updates also require consideration.

Conversely, an ETH fall through the 50-day EMA could signal a drop toward the $2,403 support level.

The 14-period Daily RSI reading, 60.26, indicates an ETH climb to the 50-day EMA before entering overbought territory.