Bitcoin (BTC) News Today: Fed Rate Outlook Weighs on BTC, Trump’s Support Unheeded

Bob Mason
Updated: May 27, 2024, 00:52 GMT+00:00

Key Points:

  • Bitcoin (BTC) declined by 1.22% on Sunday (May 26), ending the session at $68,443.
  • Fading investor bets on a September Fed interest rate cut overshadowed Trump and his support for cryptos.
  • On Monday (May 27), US BTC-spot ETF market chatter and ETH-spot ETF-related updates need investor consideration.
Bitcoin (BTC) News Today

In this article:

BTC Retreats as Fed Rate Cut Bets Falter

On Sunday (May 26), bitcoin (BTC) declined by 1.22%. Reversing a 1.06% gain from Saturday (May 25), BTC ended the week up 3.31% to $68,443.

Fading investor expectations of a September Fed rate cut impacted buyer demand for BTC and the broader crypto market. More hawkish-than-expected FOMC Meeting Minutes and robust US service sector PMI numbers affected market sentiment toward the Fed rate path.

According to the CME FedWatch Tool, the probability of the Fed standing pat in September increased from 35.2% to 50.2% in the week ending May 24.

US-BTC-spot ETF market flow data reflected in the effects of the Fed rate path on demand for BTC. Net inflows trending lower on Wednesday and Thursday. Nevertheless, the BTC-spot ETF market recorded total net inflows of $1,056.7 million in the week ending May 24, supporting BTC at current price levels.

US consumer confidence numbers (May 28) and the US Personal Income and Outlays Report (May 31) could further influence sentiment toward the Fed rate path. An unexpected pickup in consumer confidence, upward trends in personal income/spending, and sticky inflation may sink bets on a September Fed rate cut.

Market sentiment toward the Fed rate path overshadowed Republican Party front-runner Donald Trump’s support for the crypto market.

However, ethereum (ETH) had a contrasting Sunday session, gaining 2.01% to end the week up 24.59% to $3.826. Progress toward a US ETH-spot ETF market drove buyer demand for ETH.

Technical Analysis

Bitcoin Analysis

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

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

US crypto-spot ETF-related news and SEC activity need consideration.

Conversely, a BTC drop below the 50-day EMA would bring the $64,000 support level into play.

With a 57.83 14-Daily RSI reading, BTC could return to the all-time high of $73,808 before entering overbought territory.

BTC Daily Chart sends bullish near-term price signals.
BTCUSD Daily Chart 270524

Ethereum Analysis

ETH sat well above the 50-day and 200-day EMAs, confirming the bullish price trends.

An ETH breakout from the $3,835 resistance level could give the bulls a run at the $4,000 handle. A break above the $4,000 handle would support a move to the March high of $4,091.

US ETH-spot ETF market chatter needs consideration.

Conversely, an ETH fall through the $3,650 handle could give the bears a run at the $3,480 support level.

The 14-period Daily RSI reading, 70.57, shows ETH sitting in overbought territory. Selling pressure could intensify at the $3,835 resistance level.

ETH Daily Chart sends bullish price signals.
ETHUSD Daily Chart 270524

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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