Bitcoin (BTC) News Today: BTC Dips Amid Fed Rate Fears and ETF Inflows Slowdown

Bob Mason
Updated: May 30, 2024, 01:44 GMT+00:00

Key Points:

  • Bitcoin (BTC) fell by 1.00% on Wednesday (May 29), ending the session at $67,645.
  • Market risk aversion impacted buyer appetite for BTC amidst rising concerns about the Fed interest rate trajectory.
  • Investors should consider US economic data, FOMC member commentary, and US BTC-spot ETF market flow data on Thusday (May 30).
Bitcoin (BTC) News Today

In this article:

US-BTC Spot ETF Market Inflows Slow Ahead of US Inflation Numbers

On Wednesday (May 29), bitcoin (BTC) fell by 1.00%. Following a 1.50% loss on Tuesday (May 28), BTC ended the session at $67,645.

Investor concerns about the Fed interest rate trajectory impacted buyer demand for riskier assets. The market focus is on the US Personal Income and Outlays Report, out on Friday (May 31).

Recent US economic data have forced investors to reduce bets on a September Fed rate cut. Labor market conditions remain tight, with the services sector performing better than expected.

The global equity markets trended lower mid-week, with the Hang Seng Index, the DAX, and the Nasdaq Composite Index ending the sessions in the red. Significantly, the Hang Seng Index slid by 1.83%, with the DAX and the Nasdaq seeing losses of 1.10% and 0.58%, respectively.

US BTC-spot ETF market inflows fell sharply after the US Memorial Day holidays. According to Farside Investors, the US BTC-spot ETF market saw total net inflows of $45 million on Tuesday (May 28), down from $251.9 million on Friday (May 24).

Flow data for Wednesday (May 29) continued to reflect market uncertainty.

  • Grayscale Bitcoin Trust (GBTC) saw net outflows of $31.1 million.
  • Fidelity Wise Origin Bitcoin Fund (FBTC) reported net inflows of $17.7 million.
  • Bitwise Bitcoin ETF (BITB) saw net inflows of $11.0 million.
  • Excluding flow data from iShares Bitcoin Trust (IBIT) and Valkyrie Bitcoin Fund (BRRR), the spot-ETF market saw net inflows of $3.7 million.

The US BTC-spot ETF market could avoid total net outflows for the twelfth successive session despite decreasing inflows. The US BTC-spot ETF market has likely provided BTC price stability. BTC has avoided sub-$65,000 levels for the second consecutive week and only the second time since the final week of March.

US ETH-Spot ETF Market Activity Fails to Boost Buyer Demand

On Wednesday, ETH-spot ETF-related updates failed to boost buyer demand for ETH.

BlackRock (BLK) filed its amended S-1 form. Bloomberg Intelligence Senior ETF Analyst Eric Balchunas shared news of the BlackRock filing, saying,

“Good sign. Prob see rest roll in soon. Then prob one more round of fine-tune comments from Staff. End of June launch a legit possibility altho keeping my o/u date as July 4th.”

ETH slid by 2.02% on Wednesday despite progress toward a US ETH-spot ETF market.

Technical Analysis

Bitcoin Analysis

BTC hovered above the 50-day and 200-day EMAs, affirming the bullish price signals.

A BTC move through the $69,000 resistance level could give the bulls a run at the $73,808 all-time high.

Investors should consider FOMC member chatter, US GDP Data, US initial jobless claims, and US BTC-spot ETF market flow data.

Conversely, a BTC break below the 50-day EMA could signal a drop to the $64,000 support level.

With a 53.74 14-Daily RSI reading, BTC may climb to the all-time high of $73,808 before entering overbought territory.

BTC Daily Chart sends bullish price signals.
BTCUSD Daily Chart 300524

Ethereum Analysis

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

An ETH break above the $3,835 resistance level could give the bulls a run at the $4,000 handle. A return to the $4,000 handle would support a move to the March high of $4,091.

US ETH-spot ETF-related news needs consideration.

Conversely, an ETH drop below the $3,750 handle could signal a fall toward the $3,480 support level.

The 14-period Daily RSI reading, 64.51, indicates an ETH move to $4,000 before entering overbought territory.

ETH Daily Chart sends bullish price signals.
ETHUSD Daily Chart 300524

About the Author

Bob Masonauthor

With over 20 years of experience in the finance industry, Bob has been managing regional teams across Europe and Asia and focusing on analytics across both corporate and financial institutions. Currently he is covering developments relating to the financial markets, including currencies, commodities, alternative asset classes, and global equities.

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