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Bitcoin (BTC) News Today: Inflation Expectations and Fed Speakers Spook Investors

By:
Bob Mason
Published: May 11, 2024, 06:35 GMT+00:00

Key Points:

  • Bitcoin (BTC) slid by 3.52% on Friday (May 10), ending the session at $60,876.
  • FOMC member commentary and US inflation expectations impacted buyer demand for US BTC-spot ETFs and BTC.
  • On Saturday (May 11), investors should consider the recent BTC-spot ETF trends and the influences of US economic indicators.
Bitcoin (BTC) News Today

In this article:

Michigan Inflation Expectations and Hawkish Fed Chatter Impact BTC

Bitcoin (BTC) slid by 3.52% on Friday (May 10). Reversing a 3.19% rally from Thursday (May 9), BTC ended the session at $60,876. Despite the pullback, BTC avoided sub-$60,000.

Hawkish FOMC member commentary impacted buyer demand for US BTC-spot ETFs and BTC.

Dallas Fed President Lorie Logan reportedly discussed whether restrictive policies are sufficiently restrictive to bring inflation to the 2% target. Minneapolis Fed Neel Kashkari also raised the threat of a higher interest rate environment, impacting BTC and the broader crypto market.

The hawkish statements coincided with the US Michigan Consumer Sentiment and Inflation Expectation numbers. While the Consumer Sentiment Index fell from 77.2 to 67.4 in May, the Inflation Expectations Index rose from 3.2% to 3.5%, spooking investors.

BTC reacted to the numbers, sliding 3.11% in the hour following the report.

BTC reaction to Michigan Inflation Expectations
BTCUSD Hourly Chart 110524

US BTC-Spot ETF Market Sees Net Outflows

On Friday (May 10), the US BTC-spot ETF market saw net outflows as investors reacted to the US stats and hawkish Fed chatter.

According to Farside Investors, the US BTC-spot ETF market saw total net outflows of $84.7 million.

  • Grayscale Bitcoin Trust (GBTC) reported net outflows of $103.0 million.
  • iShares Bitcoin Trust (IBIT) saw net inflows of $12.4 million, leading the way.
  • Fidelity Wise Origin Bitcoin Fund (FBTC) reported net inflows of $5.3 million.
  • Seven issuers saw zero net flows on Friday (May 10).

Technical Analysis

Bitcoin Analysis

BTC remained below the 50-day EMA while holding above the 200-day EMA, confirming the bearish near-term but bullish longer-term price trends.

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

Investors should consider the recent US BTC-spot ETF market flow data and the looming US CPI Report. Hotter-than-expected inflation figures could fuel speculation about a Fed interest rate hike.

Conversely, a BTC fall through the $60,365 support level could bring sub-$58,000 levels into play.

With a 42.91 14-Daily RSI reading, BTC could drop below the $58,000 handle before entering oversold territory.

BTC Daily Chart sends bearish near-term price signals.
BTCUSD Daily Chart 110524

Ethereum Analysis

ETH sat below the 50-day EMA while hovering above the 200-day EMA. The EMAs affirmed the bearish near-term but bullish longer-term price signals.

An ETH break above the $3,033 resistance level could give the bulls a run at the 50-day EMA. A breakout from the 50-day EMA would support a move to the $3,244 resistance level.

Conversely, an ETH drop below the 200-day EMA could signal a fall to the $2,664 support level.

The 14-period Daily RSI reading of 38.71 suggests an ETH break below the 200-day EMA before entering oversold territory.

ETH Daily Chart sends bearish near-term price signals.
ETHUSD Daily Chart 110524

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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