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.
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.
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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.
