Bitcoin (BTC) News Today: BTC Spot ETF Market Dynamics and Extreme Greed

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Updated: Mar 3, 2024, 04:20 UTC

Key Points:

BTC declined by 0.61% on Saturday, ending the session at $62,022.
Investors reacted to the net outflows from the BTC-spot ETF market on Friday.
On Sunday, BTC-spot ETF market-related chatter needs consideration.

BTC-Spot ETF Market Saw Net Outflows

On Saturday, BTC declined by 0.61%. Partially reversing a 2.63% gain from Friday, BTC ended the session at $62,022.

Support from bets on an H1 2024 Fed rate cut fizzled out on Saturday. BTC-spot ETF market flows overshadowed bets on an H1 2024 Fed rate cut.

On Friday (March 1), the BTC-spot ETF market saw net outflows of $140.0 million, the highest since net outflows of $158.4 million on January 24. Grayscale Bitcoin Trust (GBTC) saw net outflows spike at the tail end of the week, impacting net inflows for the broader BTC-spot ETF market.

GBTC recorded net outflows of $492.4 million on Friday (March 1), down from $598.9 million of net outflows on Thursday (February 29).

Despite total net outflows on Friday (March 1), the BTC-spot ETF market saw total net inflows of $1,722.5 million in the week ending March 1. Net inflows were the second highest since the launch of the Nine on January 11. Fidelity Wise Origin Fund saw net inflows pullback on Thursday and Friday, affecting the headline number.

iShares Bitcoin Trust (IBIT) impressed, with total net inflows of $2,050.5 million in the week ending March 1. FBTC ranked second, with total net inflows of $708.6 million.

(Flow data for the week ending March 1 excludes net flows for Invesco Galaxy Bitcoin ETF (BTCO)).

BTC-spot ETF Market saw net outflows on March 1, 2024.

Farside Investors 01/03/24 BTC-Spot ETF Market Flows

Net outflows from Friday resonated on Sunday (March 3), with BTC in negative territory early in the session.

GBTC net outflows were Genesis/Gemini related. In February, Genesis Global Holdco LLC received approval to liquidate GBTC shares worth approximately $1.3 billion.

Despite the outflows, the Bitcoin Fear & Greed Index moved deeper into the Extreme Greed zone on Sunday.

Bitcoin Fear & Greed Index in Extreme Greed

The Bitcoin Fear & Greed Index climbed from 80 to 83 on Sunday, March 3. The Index moved deeper into the Extreme Greed zone. Extreme Greed signals investors are getting too greedy, suggesting a possible price correction. Failure to break above the Wednesday high of $64,006 could test buyer demand. However, BTC-spot ETF market flows will continue to influence price trends.

Bitcoin Fear and Greed Index deep in the Extreme Greed Zone.

BTC Fear and Greed Index 03/03/24

Technical Analysis

Bitcoin Analysis

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

A BTC return to the Wednesday high of $64,006 would give the bulls a run at the all-time high of $69,276.

BTC-spot ETF market-related news needs consideration.

However, a fall through the $62,000 handle would bring the $59,176 support level into play.

The 14-Daily RSI reading, 78.41, shows BTC in overbought territory. Selling pressure could intensify at the Wednesday high of $64,006.

BTC Daily Chart sends bullish price signals.

BTCUSD 030324 Daily Chart

Ethereum Analysis

ETH hovered well above the 50-day and 200-day EMAs, sending bullish price signals.

An ETH move to the Thursday high of $3,524 would give the bulls a run at the $3,683 resistance level.

ETH-spot ETF-related chatter also needs consideration.

However, an ETH drop below the $3,412 support level could signal a fall to the $3,200 support level.

The 14-period Daily RSI, at 80.78, shows ETH in overbought territory. Selling pressure could intensify at the Thursday high of $3,424.

ETH Daily Chart sends bullish price signals.

ETHUSD 030324 Daily Chart

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.