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Bitcoin (BTC) News Today: Fed Speculation and ETF Flows Lift BTC to $70K

By:
Bob Mason
Published: May 28, 2024, 03:31 GMT+00:00

Key Points:

  • Bitcoin (BTC) gained 1.35% on Monday (May 27), closing the session at $69,365.
  • Recent US BTC-spot ETF market flow trends and lingering hopes of a September Fed rate cut influenced investor appetite for BTC.
  • Investors should consider US BTC-spot ETF market flow trends and ETH-spot ETF-related news after the US Memorial Day holidays.
Bitcoin (BTC) News Today

In this article:

The Fed Rate Path, The BTC-Spot ETF Market, and Donald Trump

On Monday (May 27), bitcoin (BTC) advanced by 1.35%. Reversing a 1.22% loss from Sunday (May 26), BTC ended the session at $69,365. Significantly, BTC revisited the $70,000 handle for the first time in four sessions.

Lingering hopes of a September Fed interest rate cut drove buyer demand for BTC. Despite the recent services PMI and labor market data, the financial markets remain divided on whether the Fed will cut rates before the end of Q3 2024.

According to the CME FedWatch Tool, the chances of the Fed standing pat in September stood at 50.2% on May 24 compared with 38.2% on May 17.

US BTC-spot ETF flow trends in the week ending May 24 supported buyer appetite for BTC going into the Monday session. The US BTC-spot ETF market saw total net inflows of $1,056.7 million, up from 948.3 million in the week ending May 17.

Amidst the lingering hopes of a Fed rate cut, US Republican Party front-runner Donald Trump continued voicing his support for cryptos. The focus on cryptos may force the current US administration to curb its anti-crypto rhetoric. Significantly, the administration could also pressure the SEC to soften its regulation through enforcement approach to the US digital asset space.

A more crypto-friendly regulatory environment could boost buyer demand for BTC and the broader crypto market.

ETH-Spot ETFs and the US Economic Calendar

On Monday, ethereum (ETH) extended its winning streak to three, rising by 1.73% to end the session at $3,892. Progress toward an ETH-spot ETF market remained an ETH tailwind.

ETF Store President Nate Geraci speculated on when the SEC would approve the ETH-spot ETFs, saying,

“When will SEC approve spot eth ETF registration statements? Nobody* knows for sure, but my expectation would be next few weeks. 2-3 months max. IMO, heavy lifting already done following spot btc ETFs & eth futures ETFs. Just a matter of how long SEC wants to string this out.”

Investors should monitor ETH-spot ETF market-related chatter on Tuesday (May 28). However, US economic data and FOMC member chatter could influence buyer demand for BTC-spot ETFs and BTC.

The US CB Consumer Confidence Index will warrant investor attention. A larger-than-expected fall could fuel investor bets on a September Fed rate cut and buyer appetite for riskier assets. Furthermore, FOMC members Lisa Cook, Loretta Mester, and Neel Kashkari are on the calendar to speak. Views on the Fed interest rate trajectory need consideration.

Technical Analysis

Bitcoin Analysis

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

A BTC breakout from the $69,000 resistance level could give the bulls a run at the Monday high of $70,601. A break above $70,601 could support a move to the $73,808 all-time high.

US economic data, FOMC member chatter, and US crypto-spot ETF-related news need consideration.

Conversely, a BTC break below the 50-day EMA could give the bears a run at the $64,000 support level.

With a 57.31 14-Daily RSI reading, BTC may rise to the all-time high of $73,808 before entering overbought territory.

BTC Daily Chart sends bullish price signals.
BTCUSD Daily Chart 280524

Ethereum Analysis

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

An ETH return to the $4,000 handle could give the bulls a run at the March high of $4,091.

US ETH-spot ETF market-related news needs consideration.

Conversely, an ETH drop below the $3,835 support level could signal a fall toward the $3,480 support level.

The 14-period Daily RSI reading, 70.36, shows ETH sitting in overbought territory. Selling pressure may increase at the Monday high of $3,976.

ETH Daily Chart sends bullish price signals.
ETHUSD Daily Chart 280524

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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