Bitcoin (BTC) News Today: BTC Slides Amid Strong US Economic Indicators

SEC Approves First ETH-Spot ETF

Ethereum (ETH) gained 1.29% on Thursday (May 23), closing the session at $3,785. Investors reacted to news of the SEC approving the VanEck Ethereum ETF. Bloomberg Intelligence ETF Analyst James Seyffart shared the news, saying,

“BOOM!! APPROVED! There it is. The SEC just approved spot Ethereum ETFs. What a turn of events. It’s really happening.”

However, the VanEck Ethereum ETF is not ready to launch. The SEC approved the 19b-4 and must accept the S1 docs before VanEck can launch the ETF. Seyffart thinks it could take a couple of weeks or longer for the SEC to approve the S-1.

VanEck filed the ETH-spot ETF S1 Form shortly after the SEC approved the 19b-4.

Investors need to wait for the launch of the ETH-spot ETFs to gauge demand levels. Similar inflow trends to the US BTC-spot ETF market could significantly influence ETH price trends.

While ETH ended the Thursday session in positive territory, bitcoin (BTC) ended the session in the red.

The US Services PMI, the US Labor Market, and the US BTC-Spot ETF Market

On Thursday (May 23), bitcoin (BTC) fell by 1.59%. Following a 0.84% loss on Wednesday (May 22), BTC ended the session at $67,953.

US labor market and Services PMI data sank investor bets on a September Fed rate cut, impacting demand for riskier assets. The US S&P Global Services PMI jumped from 51.3 to 54.8 in May. US initial jobless claims declined from 223k to 215k in the week ending May 18.

According to the CME FedWatch Tool, the probability of the Fed standing pat in September rose from 41.9% to 48.4% on Thursday (May 23).

Nevertheless, the US BTC-spot ETF market likely saw total net inflows on Thursday (May 23).

According to Farside Investors,

• Grayscale Bitcoin Trust (GBTC) saw net outflows of $13.7 million.
• Fidelity Wise Origin Bitcoin Fund (FBTC) reported net inflows of $19.1 million, down from $74.6 million on Wednesday.
• ARK 21Shares Bitcoin ETF (ARKB) and Invesco Galaxy Bitcoin ETF (BTCO) had net inflows of $2 million and $2 million, respectively.
• Excluding iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market saw total net inflows of $18.9 million, signaling a nine-day inflow streak.

The Friday Session

On Friday (May 24), FOMC member commentary, US core durable goods orders, and finalized numbers from the Michigan consumers survey need consideration. Upbeat numbers could further impact investor bets on a September Fed rate cut. A more hawkish Fed rate path may affect buyer demand for BTC and the broader crypto market.

However, the SEC decision on the ARK 21Shares Ethereum ETF will attract investor interest. The final deadline is May 24, 2024.

Technical Analysis

Bitcoin Analysis

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

A BTC break above the $69,000 resistance level could give the bulls a run at the $70,000 handle. A return to $70,000 would support a move toward the $73,808 all-time high.

The US economic calendar and US BTC-spot ETF market flow data need consideration.

Conversely, a BTC drop below the $65,000 handle could signal a drop to the 50-day EMA and the $64,000 support level.

With a 56.74 14-Daily RSI reading, BTC could return to the all-time high of $73,808 before entering overbought territory.

Ethereum Analysis

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

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

The SEC decision on the ARK 21Shares Ethereum ETF application needs consideration.

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

The 14-period Daily RSI reading, 71.62, shows ETH in overbought territory. Selling pressure may increase at the $3,835 resistance level.