Bitcoin (BTC) News Today: BTC Stability as ETF Inflows Counter Fed Rate Cut Jitters

Bob Mason
Updated: May 19, 2024, 03:35 GMT+00:00

Key Points:

  • Bitcoin (BTC) declined by 0.21% on Saturday (May 18), ending the session at $66,891.
  • US BTC-spot ETF Market flow trends limited the downside as investors consider the prospects of a US ETH-spot ETF market.
  • On Sunday (May 19), crypto-spot ETF market chatter and Fed Chair Powell need consideration.
Bitcoin (BTC) News Today

In this article:

US BTC-Spot ETF Market Extended Net Inflow Streak

On Saturday (May 18), Bitcoin (BTC) declined by 0.21%. Partially reversing a 2.81% gain from Friday, BTC ended the session at $66,891. Significantly, BTC avoided sub-$66,000 for the first time since April 24.

US BTC-spot ETF market flow data for Friday (May 17) drove buyer demand for BTC going into the Saturday session. On Friday, the US BTC-spot ETF market saw total net inflows of $221.5 million, down from $257.3 million on Thursday (May 16).

Grayscale Bitcoin Trust (GBTC) reported net inflows for the third consecutive session, the longest inflow streak since the January 11 launch. The US BTC-spot ETF market extended its net inflow streak to five sessions.

The US BTC-spot ETF market saw a pickup in demand as the markets reacted to the April US inflation figures. Inflation numbers for April fueled investor bets on a September Fed rate cut. However, recent Fed speakers suggested a higher-for-longer Fed rate path, with some warning about Fed rate hikes.

On Friday, FOMC member Michelle Bowman cautioned that interest rates may rise if consumer prices trended higher. The hawkish stance likely contributed to the drop below $67,000 on Saturday.

On Sunday (May 19), Fed Chair Powell will be in the spotlight. Views on inflation, the labor market, and the timeline for a Fed rate cut could influence buyer demand for BTC.

ETH-spot ETF market news remained a focal point as investors tracked Fed speakers for guidance on the monetary policy outlook.

SEC and US ETH-spot ETF Applications in Focus

ETH-spot ETF market chatter drew investor attention on Saturday (May 18). Bloomberg Intelligence ETF Analyst James Seyffart shared a Bloomberg News article by Emily Graffeo, saying,

“It’s just not happening guys. Sorry.”

According to the Bloomberg article, ETH-spot ETF applicants anticipate SEC rejections next week. Journalist Emily Graffeo had this to say about the Bloomberg piece, saying,

“Some issuers are expecting a rejection next week, because their private dialog with the SEC hasn’t been as robust as it had been prior to the approval of spot-Bitcoin ETFs.”

The May deadlines for the SEC to approve or disapprove ETH-spot ETF applications are:

  • VanEck Ethereum ETF: May 23, 2024.
  • ARK 21Shares Ethereum ETF: May 24, 2024.
  • Hashdex Nasdaq Ethereum ETF: May 30, 2024.

Grayscale withdrew its application for the Grayscale Ethereum Futures Trust.

ETH gained 0.94% on Saturday (May 18) despite expectations of the SEC declining the spot ETF applications.

Technical Analysis

Bitcoin Analysis

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

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.

Fed Chair Powell, US BTC-spot ETF market chatter, and SEC activity need consideration.

Conversely, a BTC drop below $65,000 would give the bears a run at the $64,000 support level and the 50-day EMA. Buying pressure could intensify at the $64,000 support level. The 50-day EMA is confluent with the resistance level.

With a 58.26 14-Daily RSI reading, BTC may break above the $70,000 handle before entering overbought territory.

BTC Daily Chart sends bullish price signals.
BTCUSD Daily Chart 190524

Ethereum Analysis

ETH sat 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 could give the bulls a run at the $3,244 resistance level. A break above the $3,244 resistance level would support a move toward the $3,480 resistance level.

Conversely, an ETH fall through the $3,033 support level could bring the 200-day EMA into play.

The 14-period Daily RSI reading of 52.86 suggests an ETH move through the $3,480 resistance level before entering overbought territory.

ETH Daily Chart sends bearish near-term price signals.
ETHUSD Daily Chart 190524

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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