Bitcoin (BTC) News Today: FOMC Member Speeches to Drive BTC Price Trends

Fed Rate Cut Bets Drive Buyer Demand for BTC

Bitcoin (BTC) advanced by 1.57% on Saturday (May 4). Following a 6.42% rally on Friday (May 3), BTC ended the session at $63,928.

Investors continued to respond to the US Jobs Report. Softer-than-expected wage growth and nonfarm payroll numbers refueled investor bets on a September Fed rate cut.

According to the CME FedWatch Tool, the probability of the Fed leaving interest rates unchanged in September fell from 42.6% to 32.6% in the week ending May 3.

The influence on the US BTC-spot ETF market was evident. The US BTC-spot ETF market saw net inflows ($378.3 million) for the first time in eight sessions.

Significantly, Grayscale Bitcoin Trust (GBTC) saw net inflows ($63 million) for the first time since the launch of the BTC-spot ETF market on January 11.

According to Farside Investors, nine of the eleven issuers recorded net inflows on Friday (May 3), with two seeing zero net flows. Fidelity Wise Origin Bitcoin Fund (FBTC) topped the table, with net inflows of $102.6 million. iShares Bitcoin Trust (IBIT) ranked eighth, with net inflows of $12.7 million.

The US economic calendar will remain in focus in the week ahead. US jobless claims and Michigan Consumer Sentiment figures could further influence investor expectations of a September Fed rate cut. A more dovish Fed rate path may drive buyer demand for BTC-spot ETFs and BTC.

However, FOMC member speeches could impact price trends more. Investors should consider views on inflation, the economic outlook, and the timing for a Fed interest rate cut. While the Jobs Report raised expectations of a September rate cut, inflation remains a bugbear.

Technical Analysis

Bitcoin Analysis

BTC sat below the 50-day EMA while holding above the 200-day EMA. The EMAs confirmed the bearish near-term but bullish longer-term price trends.

A BTC breakout from the 50-day EMA and the $60,365 resistance level would support a move toward the $69,000 resistance level. Selling pressure could intensify at the $64,000 resistance level. The 50-day EMA is confluent with the resistance level.

On Sunday (May 5), investors should consider the week ahead, with the US economic calendar in focus.

Conversely, a BTC fall through the $60,365 support level could signal a drop to the $55,000 handle.

With a 48.18 14-Daily RSI reading, BTC may fall to the $55,000 handle before entering oversold territory.

Ethereum Analysis

ETH hovered below the 50-day EMA while remaining above the 200-day EMA. The EMAs affirmed the bearish near-term but bullish longer-term price signals.

An ETH breakout from the 50-day EMA and $3,244 resistance level could give the bulls a run at the $3,480 resistance level.

Conversely, an ETH break below the $3,033 support level would bring the 200-day EMA into play.

The 14-period Daily RSI reading of 45.33 suggests an ETH fall to the 200-day EMA before entering oversold territory.