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Bitcoin (BTC) News Today: Inflation, The Fed, Trump, and BTC-Spot ETF Inflows

By:
Bob Mason
Updated: Jun 13, 2024, 03:22 GMT+00:00

Key Points:

  • Bitcoin (BTC) gained 1.37% on Wednesday (June 12), closing the session at $68,302.
  • US BTC-spot ETF market flow trends drove buyer demand for BTC as investors reacted to the US CPI Report and FOMC Economic Projections.
  • US labor market data, producer prices, and Fed chatter will likely influence buyer demand for BTC-spot ETFs and BTC on Thursday (June 13).
Bitcoin (BTC) News Today

In this article:

US CPI Report and the FOMC Economic Projections

On Wednesday (June 12), bitcoin (BTC) gained 1.37%. Partially reversing a 3.15% slide from Tuesday (June 11), BTC ended the session at $68,302.

US BTC-spot ETF market flow trends for Tuesday tested buyer demand for BTC early in the Wednesday session. The US BTC-spot ETF market saw total net outflows of $200.4 million. Significantly, the US BTC-spot ETF market reported net outflows for the first time in 20 sessions.

However, US inflation figures drove buyer demand for riskier assets, with BTC striking a session high of $70,088. The US annual inflation rate softened from 3.4% to 3.3%, with core inflation down from 3.6% to 3.4% in May.

Despite the softer-than-expected inflation numbers, the FOMC released more hawkish economic projections. Significantly, the Fed increased its Core PCE inflation forecast from 2.6% to 2.8% for 2024. Furthermore, the Fed raised its Fed Funds Rate projection from 4.6% to 5.1%.

BTC slid back to sub-$67,500 before wrapping up the session at $68,302. The softer-than-expected US inflation numbers trumped the more hawkish FOMC economic projections. A softer inflation outlook could force the Fed to readjust its projections in September in favor of a more dovish Fed rate path.

The US BTC-spot ETF market flow data for Wednesday (June 13) reflected the cautious but optimistic mood, with the Fed avoiding the topic of interest rate hikes.

US BTC-Spot ETF Market Sees Net Inflows on Softer US Inflation Numbers

On Wednesday, the softer-than-expected US inflation figures drove buyer demand for US BTC-spot ETFs.

According to Farside Investors,

  • Grayscale Bitcoin Trust (GBTC) saw zero net flows on Wednesday (June 13).
  • Fidelity Wise Origin Bitcoin Fund (FBTC) reported net inflows of $50.6 million.
  • Bitwise Bitcoin ETF (BITB) and ARK 21Shares Bitcoin ETF (ARKB) had net inflows of $14.5 million and $8.5 million, respectively.
  • VanEck Bitcoin Trust (HODL) saw net inflows of $11.6 million.
  • Excluding flow data for iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market saw total net inflows of $85.2 million.

Significantly, there were no net outflows despite the more hawkish FOMC economic projections.

On Thursday, US producer prices could influence buyer demand for US BTC-spot ETFs. Producer prices are leading indicators of consumer price inflation. Upward trends in producer prices could align with the more hawkish FOMC inflation projections.

Economists forecast US producer prices to increase by 0.1% in May after rising by 0.5% in April.

Beyond the US economic calendar, Trump focused on BTC and the broader crypto market, attracting investor attention.

US Presidential Elections, Trump, and Bitcoin Mining

On Wednesday, Republican Party front-runner Donald Trump called for the US to mine all remaining BTC. The former US President posted,

“VOTE FOR TRUMP! Bitcoin mining may be our last line of defense against a CBDC. Biden’s hatred of Bitcoin only helps China, Russia, and the Radical Communist Left. We want all the remaining Bitcoin to be MADE IN THE USA!!! It will help us be ENERGY DOMINANT!!!”

Trump’s reference to China was poignant as speculation grows that China could begin accumulating BTC after its recent gold rush.

Senior FX Empire editorial team member James Hyerczyk recently discussed possible BTC demand from China. The PBoC recently ended its gold (XAU/USD)-buying spree, fueling expectations of a move toward BTC.

A surge in demand for BTC would be a boon for the crypto market after the recent Bitcoin Halving event.

Technical Analysis

Bitcoin Analysis

BTC remained above the 50-day and 200-day EMAs, confirming the bullish price trends.

A BTC move through the $69,000 resistance level could give the bulls a run at the Friday (June 7) high of $71,992. A BTC breakout from $71,992 could signal a return to the $73,808 all-time high.

The US economic indicators, US politics, SEC activity, and BTC-spot ETF market flow data require consideration.

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

With a 50.22 14-Daily RSI reading, BTC may return to its all-time high before entering overbought territory.

BTC Daily Chart sends bullish price signals.
BTCUSD Daily Chart 130624

Ethereum Analysis

ETH hovered above the 50-day and 200-day EMAs, sending bullish price signals.

A break above the $3,600 handle could signal a move toward the $3,835 resistance level.

US ETH-spot ETF-related news needs consideration.

Conversely, an ETH break below the 50-day EMA and the $3,480 support level could give the bears a run at the $3,244 support level.

The 14-period Daily RSI reading, 46.65, indicates an ETH drop to the $3,244 support level before entering oversold territory.

ETH Daily Chart sends bullish price signals.
ETHUSD Daily Chart 130624

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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