Crypto News Today: BTC-Spot ETF Inflows and Volumes Send Positive BTC Signals

Key Insights:

• BTC gained 0.21% on Saturday, ending the session at $42,996.
• BTC-spot ETF inflows countered Grayscale GBTC outflows.
• On Sunday, the markets will focus on BTC-spot ETF-related updates and US lawmaker chatter.

Bitcoin-Spot ETF: Pre-ETF Overbought Landscape Left BTC at sub-$43,000

BTC gained 0.21% on Saturday, supporting the broader crypto market. Partially reversing a 7.57% slide from Friday, BTC ended the day at $42,996. BTC briefly tested resistance at $43,500 before ending the session at sub-$43,000.

On Thursday, buying demand drove BTC to $49,020 before retreating to sub-$43,000. Investors reacted to BTC-spot ETF Grayscale GBTC outflow numbers that raised concerns about oversupply. Analysts considered BTC and the crypto market in an overbought environment in the lead into the launch of BTC-spot ETFs. Investors locked in profits, leading to the pullback.

Bloomberg Intelligence ETF analyst James Seyffart shared his views on the reasons for the recent losses, saying,

“Keep getting this question about “what’s going on with BTC price if the ETF numbers look so good”. We will know more when dust settles in a week or more but this is my guess. Prolly more than 2 but these are my top 2.”

The top two reasons included,

1. “How many people do you think bought BTC or GBTC as a short/medium-term ETF approval play and are getting out?”

2. “Sales out of GBTC are flooding market and there’s a settlement gap before *SOME* of that finds it way into these other ETFs or other exposures.”

Seyffart concluded,

“Question really is — what % of those leaving GBTC are actually gonna come back into BTC exposure.”

GBTC outflows continue to garner investor interest. Bloomberg Intelligence ETF analyst Eric Balchunas shared the inflows/outflows, volumes, and prem/discounts for the BTC-spot ETFs over the first two days of trading.

Significantly, there was a net $810 million in inflows, with iShares and Fidelity countering outflows from GBTC. Balchunas had this to say about trading volumes over the first two sessions,

“The newborns’ $3.6b in trading volume on 500k indiv trades (1.2m incl $GBTC) is very impressive as is the 20bp avg prem.”

Balchunas gave a favorable assessment of the BTC-spot ETF landscape, saying,

“Imp thing is that in order for an ETF category to grow you need volume and low fees. These have both in spades = great foundation for long term growth.”

Technical Analysis

Bitcoin Analysis

BTC held above the 50-day and 200-day EMAs, sending bullish price signals.

A BTC move through the $42,968 resistance level would give the bulls a run at the $44,690 resistance level.

On Sunday, BTC-spot ETF-related chatter and US lawmaker/SEC scrutiny of cryptos remain the focal points.

However, a break below the 50-day EMA would bring the $39,861 support level into play.

The 14-Daily RSI reading, 46.12, indicates a BTC drop to the $39,861 support level before entering oversold territory.

Ethereum Analysis

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

An ETH move to the $2,600 handle would bring the $2,650 resistance level and the Friday high of $2,717 into play.

Investors should continue to monitor ETH-spot ETF-related updates.

However, a fall through the $2,500 handle would give the bears a run at the $2,457 support level.

The 14-period Daily RSI at 62.88 suggests an ETH move to the $2,650 resistance level before entering overbought territory.