Fed Rate Cut Bets Drive Buyer Demand for BTC-Spot ETFs.
On Wednesday (June 5), bitcoin (BTC) advanced by 0.75%. Following a 2.34% rally on Tuesday (June 4), BTC ended the session at $70,979.
US ADP private payroll figures fueled investor expectations of a September Fed rate cut. The ADP reported a 152k increase in private payrolls in May after a 188k rise in April. Economists expected an increase of 175k..
Furthermore, the US ISM Services PMI increased from 49.4 to 53.8 in May. While service sector activity rebounded, input prices softened, with firms continuing to reduce jobs, albeit at a less marked pace.
The global financial markets reacted to the numbers, with 10-year US Treasury yields falling 1.22%.
According to the CME FedWatch Tool, the probability of the Fed standing pat in September fell from 33.0% to 30.2% on Wednesday.
The rising investor bets on a September Fed rate cut drove buyer demand for US BTC-spot ETFs.
According to Farside Investors,
- Grayscale Bitcoin Trust (GBTC) saw net inflows of $14.6 million on Wednesday (June 5), down from $28.2 million on Tuesday.
- Fidelity Wise Origin Bitcoin Fund (FBTC) reported net inflows of $220.6 million, down from $378.7 million on Tuesday (June 4).
- ARK 21Shares Bitcoin ETF had net inflows of $71.4 million, down from $138.7 million on Tuesday.
- Excluding flow data for iShares Bitcoin Trust (IBIT) and Valkyrie Bitcoin Fund (BRRR), the US BTC-spot ETF market saw total net inflows of $332.7 million on Wednesday (June 5).
- The US BTC-spot ETF market registered total net inflows of $886.6 million on Tuesday (June 4), the highest since launch.
Increased demand for US BTC-spot ETFs put the US-ETH-spot ETF applications in focus.
SEC Chair Gensler Signals a Lengthy Approval Process for ETH-Spot ETFs
On Wednesday, ethereum (ETH) ended the session up 1.41% to $3,866. Nevertheless, uncertainty about the timing of an ETH-spot ETF launch left ETH at sub-$4,000.
SEC Chair Gary Gensler spoke to CNBC on Wednesday, warning it could take time to approve the pending S-1 forms. Nevertheless, the SEC Chair did say that ETH had been traded on the CME Futures for over three years, raising hopes of an eventual launch.
Bitcoin Price Forecast
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See all Bitcoin forecastsUS BTC-spot ETF market flow data, US economic indicators, and SEC activity need consideration.
Conversely, a BTC break below the $69,000 support level could give the bears a run at the 50-day EMA.
With a 63.63 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 return to the $4,000 handle could give the bulls a run at the March high of $4,091.
US ETH-spot ETF-related news needs consideration.
Conversely, an ETH break below the $3,835 support level could bring the $3,700 handle into play.
The 14-period Daily RSI reading, 66.61, suggests an ETH return to $4,000 before entering overbought territory.
