BTC Price Analysis: BlackRock ETF Inflows Surge on Trump’s Pro-Crypto Stance

BTC Sees a Saturday Pullback

On Saturday, November 23, BTC declined by 1.26%, reversing a modest 0.58% gain from Friday, closing at $97,113. Despite the pullback, BTC avoided a drop below $95k. However, BTC underperformed the broader crypto market, which increased by 0.40% to a total market cap of $3.270 trillion.

US Services PMI Weighs on Fed Rate Cut Hopes and BTC Demand

On Friday, November 22, the S&P Global Services PMI increased from 55.0 in October to 57.0 in November. Accounting for around 80% of the US GDP, the upbeat data lowered investor bets on a December Fed rate cut. The more hawkish Fed rate path dampened BTC demand.

However, market optimism surrounding Trump’s pro-crypto agenda remains a BTC tailwind, limiting the effect of US data on BTC price trends.

US BTC-Spot ETF Market Sees Record Weekly Inflows

US BTC-spot ETF market inflows reflected investor sentiment toward Trump’s campaign pledges. On Friday, the US BTC-spot ETF market reported net inflows of $490.3 million, extending its inflow streak to five sessions.

The US BTC-spot ETF market saw inflows of $3,353.1 million in the week ending November 22, the highest since the market’s launch in January 2024. According to Farside Investors:

• iShares Bitcoin Trust (IBIT) reported weekly net inflows of $2,503.5 million in the week ending November 22.
• Fidelity Wise Origin Bitcoin Fund (FBTC) had net inflows of $772.7 million on Wednesday.
• ARK 21Shares Bitcoin ETF (ARKB) saw weekly net inflows of $301.5 million.

BlackRock’s (BLK) ETF inflows continued to impress. Since its launch, IBIT saw net inflows of $31,333 million compared with the US BTC-spot ETF market’s net inflows of $30,814 million. Grayscale Bitcoin Trust (GBTC) has $20,326 million in net outflows since launching on January 11, 2024.

Bloomberg Intelligence Senior ETF Analyst Eric Balchunas summarized the US BTC-spot ETF market flow trends, saying,

“US spot ETFs now 98% of way there to passing Satoshi as world’s biggest holder. My over/under date of Thanksgiving looking good. If next 3 days are like the past 3 days flow-wise it’s a done deal. Also, at $107b aum, they only lag gold ETFs by $23b, good shot to surpass by Xmas.”

Trump’s Pro-BTC Agenda Review

President-elect Donald Trump’s pledge to make BTC a US strategic reserve continues to fuel market sentiment.

This week, Republicans made progress toward making BTC a strategic reserve asset. Trump nominated Scott Bessent as US Treasury Secretary. In July 2024, Bessent highlighted the importance of the crypto market to US investors while criticizing the Democratic Party’s anti-crypto stance.

A pro-crypto Treasury Secretary and SEC Chair could pave the way for BTC to become a strategic reserve asset.

Congress, the Federal Reserve, the Treasury Department, and the President must approve BTC as a strategic reserve asset. Additionally, the SEC and the Commodity Futures Trading Commission (CFTC) must establish clear regulatory guidelines, highlighting the significance of Trump’s new nominees and upcoming picks.

Technical Analysis

Bitcoin Analysis

Despite Saturday’s retreat, BTC sits comfortably above the 50-day and 200-day Exponential Moving Averages (EMA), sending bullish price signals.

Breaking above November 22’s high of $99,318 could enable the bulls to target $100,000. A break above $100,000 would bring $120,000 into play.

Investors should monitor trends in US BTC-spot ETF market flows alongside updates on the SEC leadership race and regulatory policies.

Conversely, a BTC break below $95,000 could signal a drop to $90,000. A fall through $90,000 may enable the bears to target $87,500.

With a 78.65 14-day RSI reading, BTC sits in overbought territory. Selling pressure could intensify at $99,318.

Ethereum Analysis

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

An ETH break above the $3,480 resistance level could signal a move toward the $3,835 resistance level. Furthermore, a breakout from the $3,835 resistance level may enable the bulls to target $4,000.

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

Conversely, an ETH drop below the $3,244 support level may bring the $3,033 support level into play.

The 14-period Daily RSI reading, 67.04, suggests an ETH move to the $3,480 resistance level before entering overbought territory.

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