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Bitcoin (BTC) News Today: ETF Market Fluctuations Drive Investor Sentiment

By:
Bob Mason
Published: Mar 2, 2024, 05:47 GMT+00:00

Key Points:

  • BTC gained 2.63% on Friday, closing the session at $62,401.
  • iShares Bitcoin Trust inflows and rising bets on an H1 2024 Fed rate cut contributed to the gains.
  • BTC-spot ETF-related news and regulatory chatter are the focal point on Saturday.
Bitcoin (BTC) News Today

In this article:

BTC Ends Friday in Positive Territory on Rising Bets on a Fed Rate Cut

On Friday, BTC gained 2.63%. Reversing a 2.54% loss from Thursday, BTC ended the session at $62,401. Despite the positive session, BTC fell short of the Wednesday high of $64,006.

Rising bets on an H1 2024 Fed rate cut contributed to the gains. On Friday, the Nasdaq Composite Index rallied 1.14%. Investors reacted to weaker-than-expected ISM Manufacturing PMI and Michigan Consumer Sentiment reports.

The ISM Manufacturing PMI fell from 49.1 to 47.8 in February. The Michigan Consumer Sentiment Index declined from 79.0 to 76.9 in February, down from a preliminary 79.6. Significantly, the Michigan Consumer Expectations Index fell from 77.1 to 75.2, down from a preliminary 78.4.

However, BTC-spot ETF market-related updates also needed consideration.

BTC-Spot ETF Market Flows Send Mixed Signals

BTC-spot ETF market data warranted investor attention on Friday. Grayscale Bitcoin Trust (GBTC) saw net outflows surge from $216.4 million (February 28) to $598.9 million (February 29). However, iShares Bitcoin Trust (IBIT) saw net inflows of $603.9 million on February 29, ensuring the BTC-spot ETF Market avoided net outflows.

On February 29, the BTC-spot ETF market saw total net inflows of $92.4 million, down from $673.4 million on February 28. Fidelity Wise Origin Bitcoin Fund (FBTC) saw net inflows fall from $245.2 million (February 28) to $44.8 million (February 29).

BTC-spot ETF market inflows slide on surge in GBTC outflows.
BitMEX Research Flow Data – 29/02/24

However, BTC-spot ETF market flow data for March 1 were disappointing.

GBTC saw net outflows of $492.4 million on Friday, March 1. IBIT saw net inflows of $202.5 million on March 1, down from $603.9 million on February 29. The sharp pullback in IBIT net inflows and elevated GBTC net outflows led to the BTC-spot ETF market posting net outflows for the session.

On March 1, the BTC-spot ETF market saw total net outflows of $140.0 versus net inflows of $92.3 million on February 29. Nonetheless, the BTC-spot ETF market saw total net inflows of $1,722.5 million in the week ending March 1, up from $583.5 million in the previous week.

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

BTC-spot ETF market sees net outflows on March 1.
Farside 010324 BTC-Spot ETF Market Flows

Total net outflows across the BTC-spot ETF market likely contributed to the BTC losses (-0.31%) on Saturday, March 2.

Technical Analysis

Bitcoin Analysis

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

A BTC break above the Wednesday high of $64,006 would support a move toward the all-time high of $69,276.

BTC-spot ETF market-related chatter needs consideration.

However, a drop below the $62,000 handle would give the bears a run at the $59,176 support level.

The 14-Daily RSI reading, 80.26, shows BTC in overbought territory. Selling pressure will likely intensify at the Wednesday high of $64,006.

BTC Daily Chart sends bullish price signals.
BTCUSD 020324 Daily Chart

Ethereum Analysis

ETH remained well above the 50-day and 200-day EMAs, affirming bullish price signals.

An ETH break above the Thursday high of $3,524 would support a move toward the $3,683 resistance level.

Investor sentiment toward the SEC approval of ETH-spot ETFs remains a focal point.

However, an ETH break below the $3,412 support level would bring the $3,200 support level into view.

The 14-period Daily RSI, at 80.96, shows ETH in overbought territory. ETH may face intensifying selling pressure could intensify at the Thursday high of $3,524.

ETH Daily Chart sends bullish price signals.
ETHUSD 020324 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.

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