Bitcoin (BTC) News Today: Fed Chatter and the SEC Impact US BTC-Spot ETF Flows

Bob Mason
Published: May 8, 2024, 03:20 GMT+00:00

Key Points:

  • Bitcoin (BTC) fell by 1.31% on Tuesday (May 7), ending the session at $62,362.
  • Hawkish FOMC member commentary and SEC court filings impacted buyer demand for BTC and the broader crypto market.
  • On Wednesday (May 8), SEC activity, FOMC member commentary, and BTC-spot ETF market flow data need consideration.
Bitcoin (BTC) News Today

In this article:

Hawkish Fed Chatter and SEC vs. Crypto News Impacted BTC

Bitcoin (BTC) fell by 1.31% on Tuesday (May 7). Following a 1.26% loss on Monday (May 6), BTC ended the session at $62,362.

Uncertainty about a September Fed interest rate cut impacted buyer demand for BTC. Minneapolis Fed President Neel Kashkari raised the threat of a Fed interest rate hike in an essay, discussing current interest rate levels and sticky inflation. The Nasdaq Composite Index declined by 0.10%.

SEC activity also led to losses. After sending Robinhood (HOOD) a Wells Notice, the SEC filed a reply brief in the ongoing SEC vs. Ripple case. SEC arguments against the Ripple opposition brief raised uncertainty about the case. Significantly, the reply brief highlighted the SEC’s view of the crypto market and its likely intent to continue pursuing crypto players in the US.

SEC activity and the hawkish Fed chatter likely contributed to Grayscale Bitcoin Trust seeing a resumption of net outflows.

US BTC-Spot ETF Market Third Session of Net Inflows Hinged on iShares Bitcoin Trust

The US BTC-spot ETF market faces the prospect of an eighth day of net outflows in ten sessions on Tuesday (May 7).

According to Farside Investors,

  • Grayscale Bitcoin Trust (GBTC) saw net outflows of $28.6 million on Tuesday (May 7) vs. net inflows of $3.9 million on Monday (May 6).
  • Fidelity Wise Origin Bitcoin Fund saw net inflows slide from $99.2 million to $4.1 million.
  • Five of the eleven issuers recorded zero net flows on Tuesday (May 7) vs. two on Monday (May 6).
  • Excluding flow data for iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market saw total net outflows of $15.7 million. On Monday (May 6), the US BTC-spot ETF market saw total net inflows of $217.0 million.

Considering the investor sensitivity to Fed commentary and SEC activity, it could be another testy session.

On Wednesday (May 8), FOMC members Philip Jefferson, Susan Collins, and Lisa Cook are on the calendar to speak. Views on inflation and the timing of a Fed rate cut could impact buyer demand for BTC and the broader market. Furthermore, investors should monitor SEC activity throughout the session.

Ethereum (ETH) was also a talking point on Tuesday (May 7).

Grayscale Withdraws ETH Futures ETF Application

On Tuesday (May 7), news hit the wires of Grayscale withdrawing its filing for an Ethereum Futures ETF. Bloomberg Intelligence ETF Analyst James Seyffart shared the news, saying,

“UPDATE This is interesting. Grayscale just withdrew their 19b-4 filing for an Ethereum futures ETF. This was essentially a trojan horse filing in my view, in order to create the same circumstances that allowed Grayscale to win the $GBTC lawsuit (approve futures deny spot).”

Seyffart elaborated, saying,

“Idk why they’d do this honestly. In my mind might as well make the SEC write up an approval or denial for an ETH futures ETF and go from there? Maybe the SEC spoke with Grayscale about this… And whatever was said convinced Grayscale to withdraw? (This is a complete guess).”

ETH declined by 1.86% on Tuesday (May 7), ending the session at $3,007.

Technical Analysis

Bitcoin Analysis

BTC remained below the 50-day EMA while sitting above the 200-day EMA, affirming the bearish near-term but bullish longer-term price signals.

A BTC breakout from the 50-day EMA and the $64,000 resistance level could give the bulls a run at the $69,000 resistance level. A break above the $69,000 resistance level would support a move toward the $73,808 all-time high.

On Wednesday (May 8), Fed speakers, SEC-related news, and BTC-spot ETF market flow trends need consideration.

Conversely, a BTC break below the $60,365 support level could signal a drop below the $60,000 level.

With a 46.57 14-Daily RSI reading, BTC may fall through the $58,000 handle before entering oversold territory.

BTC Daily Chart sends bearish near-term price signals.
BTCUSD Daily Chart 080524

Ethereum Analysis

ETH sat below the 50-day EMA while holding above the 200-day EMA. The EMAs confirmed the bearish near-term but bullish longer-term price trends.

An ETH breakout from the $3,033 resistance level would support a move toward the 50-day EMA and the $3,244 resistance level.

Conversely, an ETH break below the $3,000 handle could give the bears a run at the 200-day EMA.

The 14-period Daily RSI reading of 43.00 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 080524

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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