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Bitcoin (BTC) News Today: BTC Weathers Regulatory Uncertainty and Rate Fears

By:
Bob Mason
Updated: May 20, 2024, 02:35 GMT+00:00

Key Points:

  • Bitcoin (BTC) fell by 0.96% on Sunday (May 19), ending the session at $66,248.
  • Uncertainty about the SAB 121 resolution and hawkish FOMC member commentary pressured BTC and the broader crypto market.
  • On Monday (May 20), FOMC member commentary and crypto-spot ETF market news need consideration.
Bitcoin (BTC) News Today

In this article:

US BTC-Spot ETF Market Extended Net Inflow Streak

On Sunday (May 19), Bitcoin (BTC) fell by 0.96%. Following a 0.21% decline on Saturday (May 18), BTC ended the week up 4.80% to $66,248.

Hawkish FOMC member chatter from Friday (May 17) resonated over the weekend. FOMC member Michelle Bowman warned that interest rates could rise if consumer prices trended higher.

In recent speeches, FOMC members signaled a higher-for-longer rate path to shore confidence inflation would return to the 2% target. FOMC members Neel Kashkari, Loretta Mester, and Raphael Bostic were among Fed speakers suggesting a delay to interest rate cuts.

However, BTC avoided a sharp decline, with US BTC-spot ETF market inflows providing price support.

In the week ending May 17, the US BTC-spot ETF market saw total net inflows of $948.3 million. Total net inflows were up from $139.4 million in the week ending May 10, marking a second consecutive week of total net inflows after four successive weeks of total net outflows.

US inflation and retail sales figures countered hawkish Fed chatter, driving buyer demand for US BTC-spot ETFs.

On Monday (May 20), investors should monitor FOMC member speeches amidst expectations of a September Fed rate cut.

FOMC members Raphael Bostic, Christopher Waller, and Philip Jefferson are on the calendar to speak. Views on inflation and the timing of a Fed rate cut could influence buyer demand for US BTC-spot ETFs and BTC price trends.

However, investors must also consider crypto-related updates from Capitol Hill. US lawmakers and investors await President Joe Biden’s decision on whether to sign or veto the SAB 121 resolution.

On Thursday (May 16), the US Senate repealed SAB 121. If President Joe Biden signs the resolution, firms, including US banks, would not need to include assets under custody on their balance sheets. A resolution would allow banks to hold crypto for clients, a positive outcome for BTC and the broader crypto market.

Technical Analysis

Bitcoin Analysis

BTC sat comfortably above the 50-day and 200-day EMAs, sending bullish price signals.

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

FOMC member commentary, US BTC-spot ETF flow data for Monday, and updates from Capitol Hill need consideration.

Conversely, a BTC drop below the $64,000 support level and the 50-day EMA could signal a fall to the $60,365 support level. However, buying pressure may increase at the $64,000 support level. The 50-day EMA is confluent with the support level.

With a 55.89 14-Daily RSI reading, BTC may return to the $70,000 handle before entering overbought territory.

BTC Daily Chart sends bearish near-term price signals.
BTCUSD Daily Chart 200524

Ethereum Analysis

ETH remained below the 50-day EMA while holding above the 200-day EMA. The EMAs sent bearish near-term but bullish longer-term price signals.

An ETH break above the 50-day EMA would support a move to the $3,244 resistance level. If ETH breaks out from the $3,244 resistance level, the bulls could target the $3,480 resistance level.

Conversely, an ETH drop below the $3,033 support level could give the bears a run at the 200-day EMA.

The 14-period Daily RSI reading of 49.37 indicates an ETH drop to the 200-day EMA before entering oversold territory.

ETH Daily Chart sends bearish near-term price signals.
ETHUSD Daily Chart 200524

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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