Bitcoin (BTC) News Today: Fed Rate Path Impact on BTC Trends Ahead of US Data

Bob Mason
Updated: May 26, 2024, 03:02 GMT+00:00

Key Points:

  • Bitcoin (BTC) gained 1.06% on Saturday (May 25), ending the session at $69,291.
  • Easing market jitters of a Fed interest rate hike and US BTC-spot market inflow data for Friday (May 24) drove buyer demand for BTC.
  • On Sunday (May 26), US crypto-spot ETF market chatter and upcoming US economic indicators warrant investor attention.
Bitcoin (BTC) News Today

In this article:

Uncertainty About a September Fed Rate Cut Leaves BTC at Sub-$70,000

On Saturday (May 25), bitcoin (BTC) gained 1.06%. After advancing by 0.90% on Friday (May 24), BTC ended the session at $69,291.

US economic indicators from the Friday session continued to drive buyer demand for BTC and the broader crypto market. The softer-than-expected US inflation expectation numbers for May stoked a Friday recovery from sub-$67,000.

The US BTC-spot ETF market saw a positive response to the inflation expectation figures, with total net inflows reaching $251.9 million on Friday, up from $107.9 million on Thursday (May 23).

Despite the hawkish FOMC Meeting Minutes and hotter-than-expected US S&P Global Services PMI, the US BTC-spot ETF market saw total net inflows of $1,056.7 million in the week ending May 24. Total net inflows were the highest since the week ending March 15 (+$2,565.7 million).

Nevertheless, BTC continued to fall short of the $70,000 handle. Uncertainty about a September Fed rate cut could impact BTC price trends before the US Personal Income and Outlays Report (Friday, May 31).

Better-than-expected personal income/spending and hotter-than-expected inflation numbers could refuel speculation about a Fed rate hike. A more hawkish Fed rate path could kickstart a broad-based crypto sell-off.

However, ethereum (ETH) spot ETF market-related news may counter the effects of a more hawkish Fed rate path.

Approvals of the S1 forms and the launch of ETH-spot ETFs would pave the way to a crypto-spot ETF market. Issuers may want to assess US ETH-spot ETF flow trends before filing applications for altcoin-spot ETFs. Weak demand for US ETH-spot ETFs could delay filings for altcoin-spot ETFs until after the US Presidential Election.

Technical Analysis

Bitcoin Analysis

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

A BTC return to the $70,000 handle would support a move toward the $73,808 all-time high.

US crypto-spot ETF-related news and the upcoming US economic calendar need consideration.

Conversely, a BTC break below the $69,000 support level would bring the 50-day EMA and the $64,000 support level into play.

With a 59.81 14-Daily RSI reading, BTC could climb to the all-time high of $73,808 before entering overbought territory.

BTC Daily Chart sends bullish price signals.
BTCUSD Daily Chart 260524

Ethereum Analysis

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

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

US ETH-spot ETF market news needs consideration.

Conversely, an ETH break below the $3,650 handle could signal a drop to the $3,480 support level.

The 14-period Daily RSI reading, 68.61, indicates an ETH move through the $3,835 resistance level before entering overbought territory.

ETH Daily Chart sends bullish price signals.
ETHUSD Daily Chart 260524

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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