Bitcoin (BTC) News Today: Silk Road BTC Sales, the Fed, and BTC-Spot ETF Market Flows

Bob Mason
Published: Apr 3, 2024, 03:43 UTC

Key Points:

  • Bitcoin (BTC) slid by 5.95% on Tuesday, ending the session at $65,592.
  • Sentiment toward a Fed rate hike impacted BTC-spot ETF market flows and buyer demand for BTC.
  • On Wednesday, US economic indicators, Fed Chair Powell, and BTC-spot ETF market flow data need consideration.
Bitcoin (BTC) News Today

In this article:

Fading Bets on a Fed Rate Cut Impact Bitcoin-Spot ETF Market Inflows

On Tuesday (April 2), BTC slid by 5.95%. Following a 2.30% loss on Monday, BTC ended the day at $65,592.

Better-than-expected US ISM Manufacturing PMI impacted the BTC-spot ETF market. 10-year US Treasury yields reacted to the data, influencing buyer appetite for riskier assets. Notably, BTC extended the losses from Monday early in the session.

Investors responded to the finalized BitMEX Research BTC-spot ETF market flow data for April 1.

  • The BTC-spot ETF market saw total net outflows of $85.8 million after seeing net inflows of $183.0 million on March 28.
  • Grayscale Bitcoin Trust (BTC) saw net outflows of $302.6 million versus outflows of $104.9 million (March 28).
  • Fidelity Wise Origin Bitcoin Fund (FBTC) saw net inflows of $44.0 million, down from $68.1 million (March 28).
  • iShares Bitcoin Trust (IBIT) saw net inflows of $165.9 million, up from $95.1 million (March 28).
  • ARK 21Shares Bitcoin ETF saw net outflows ($0.3 million) for the first time since launching on January 11.

Following another increase in 10-year US Treasury yields on Tuesday, the BTC-spot ETF market remained under pressure. On Tuesday, the upswing in Treasury yields pressured demand for riskier assets. The Nasdaq Composite Index and the S&P 500 advanced by 0.95% and 0.72%, respectively. On Tuesday, the Dow slid by 1.00%.

According to April 2 preliminary BTC-spot ETF Market numbers from Farside Investors,

  • FBTC saw net inflows of $44.8 million.
  • GBTC saw net outflows of $81.9 million.
  • ARKB saw net outflows of $87.5 million.

GBTC ranked second by net outflows for the first time since the SEC approved the first batch of BTC-spot ETFs on January 11. IBIT must see net inflows above $110.2 million for the BTC-spot ETF market to see net inflows.

US Government Plans 30,000 BTC Sale

While the focus remains on the Fed and the BTC-spot ETF market, news of the US government planning to offload $2 billion in crypto added to the negative sentiment. On Tuesday, news hit the wires of the US government transferring 30,175 BTC to a Coinbase (COIN) wallet. The 30,175 BTC stems from the Silk Road haul, totaling approximately 51,680.33 BTC.

Amidst the sharp crypto market retreat, ETH-spot ETF market-related news continued to draw interest.

SEC Remains Silent on ETH-Spot ETF Applications

There were no comments from the SEC vis-à-vis the ETH-spot ETF applications. Bloomberg Intelligence ETF Analyst James Seyffart shared a news piece relating to the Fidelity rule change filing, saying,

“I’ve been tagged in this tweet and bunch of others regarding the 19b-4 documents filed for the Ethereum ETFs today. Nothing in the filings signal to me that anything has changed.”

Technical Analysis

Bitcoin Analysis

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

A BTC return to the $67,500 handle would support a move to the $69,000 resistance level. A breakout from the $69,000 resistance level could give the bulls a run at the March 14 ATH of $73,808.

On Wednesday, SEC activity, BTC-spot ETF market flow data, US economic data, and Fed chatter warrant investor consideration.

Conversely, a drop below the $64,000 support level would bring the 50-day EMA into play. A break below the 50-day EMA would give the bears a run at the $60,365 support level.

With a 14-Daily RSI reading of 48.09, BTC could drop below the 50-day EMA before entering oversold territory.

BTC Daily Chart sends bullish price signals.
BTCUSD 030424 Daily Chart

Ethereum Analysis

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

A breakout from the 50-day EMA would give the bulls a run at the $3,480 resistance level. A break above the $3,480 resistance level could support a return to the $3,650 handle.

ETH-spot ETF-related chatter remains the focal point.

Conversely, an ETH drop below the $3,244 support level could give the bears a run at the $3,033 support level.

The 14-period Daily RSI reading of 43.41 suggests an ETH fall to the $3,033 support level before entering oversold territory.

ETH Daily Chart sends bearish near-term price signals.
ETHUSD 030424 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.

Did you find this article useful?