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Bitcoin (BTC) News Today: Senator Lummis Hints at US Government Crypto Strategy

By:
Bob Mason
Published: Apr 7, 2024, 05:26 GMT+00:00

Key Points:

  • Bitcoin (BTC) gained 1.56% on Saturday, April 6, closing the session at $68,979.
  • BTC-spot ETF market flow data influenced buyer demand for BTC as the Bitcoin Halving Clock signaled 13 days.
  • On Sunday, BTC-spot ETF market-related chatter and US lawmakers warrant investor attention.
Bitcoin (BTC) News Today

In this article:

BTC-Spot ETF Market Flow Data Drove Buyer Demand for BTC

On Saturday (April 6), BTC gained 1.56%. Reversing a 0.95% loss from Friday, BTC closed the session at $68,979.

BTC-spot ETF market flow data for Friday (April 5) fueled buyer demand for BTC. Inflows declined from $213.4 million to $203.0 million. Investor appetite for BTC was resilient despite the hotter-than-expected US Jobs Report.

On Friday, the investor appetite for BTC-spot ETFs aligned with Nasdaq Composite Index gains (+1.24%). Noticeably, demand remained robust as the Bitcoin Halving Countdown Clock signaled 13 Days.

Bitcoin Halving in 13 Days.
BitcoinHalvingCountdown 070424

Investor sentiment toward the demand outlook has become more relevant in recent days. On April 2, news hit the wires of US government plans to offload 30,000 BTC. The 30,000 BTC originated from the Silk Road stash, where the US government seized approximately 51,680.33 BTC. The news contributed to a 5.95% loss on April 2 before BTC retargeted the $70,000 handle over the weekend.

The reduced supply from the Bitcoin Halving Event and robust demand through the BTC-spot ETF market could absorb 30,000 BTC hitting the crypto markets.

On Friday, Senator Cynthia Lummis had this to say about the Silk Road haul,

“Between a bullish budget forecast and a $2 billion Bitcoin seizure, the Biden admin’s actions are starting to suggest it sees the value in crypto assets despite publicly downplaying the industry’s potential. Is the U.S. government becoming one of the biggest HODLers?”

While the crypto market prepares for the US government sale, the outlook for Grayscale Bitcoin Trust outflows improved. Genesis reportedly completed the sale of $2.1 billion worth of Grayscale Bitcoin Trust shares. Bloomberg Intelligence Senior ETF Analyst Eric Balchunas shares the news, saying,

“Genesis: “That’s All.”

Technical Analysis

Bitcoin Analysis

BTC sat comfortably above the 50-day and 200-day EMAs, sending bullish price signals.

A BTC return to the $70,000 handle would support a move to the March 14 ATH of $73,808.

On Sunday, BTC-spot ETF market chatter and US lawmakers need investor attention.

Conversely, a BTC break below the $69,000 support level could give the bears a run at the $64,000 support level.

With a 14-Daily RSI reading of 55.14, BTC could break above the all-time high of $73,808 before entering overbought territory.

BTC Daily Chart sends bullish price signals.
BTCUSD 070424 Daily Chart

Ethereum Analysis

ETH hovered above the 50-day and 200-day EMAs. The EMAs sent bullish price signals.

A hold above the 50-day EMA could give the bulls a run at the $3,480 resistance level. A break above the $3,480 resistance level could bring the $3,650 handle into play.

ETH-spot ETF-related news warrants investor attention.

Conversely, an ETH drop below the 50-day EMA could signal a fall to the $3,244 support level. A fall through the $3,244 support level could bring the $3,033 support level into play.

The 14-period Daily RSI reading of 47.42 suggests an ETH drop to the $3,033 support level before entering oversold territory.

ETH Daily Chart sends bullish price signals.
ETHUSD 070424 Daily Chart

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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