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Bitcoin (BTC) News Today: Spot ETF Outflow Streak Leaves BTC at Sub-$65,000

By:
Bob Mason
Updated: Jun 21, 2024, 04:20 GMT+00:00

Key Points:

  • Bitcoin (BTC) declined by 0.25% on Thursday, June 20, ending the session at $64,862.
  • Fed fear and US BTC-spot ETF outflow trends impacted buyer demand for BTC.
  • On Friday, June 21, US private sector PMIs, BTC-spot ETF market flow trends, and US lawmakers need consideration.
Bitcoin (BTC) News Today

In this article:

BTC Lingers Below $65,000 as Fed Rate Cut Bets Ease

On Thursday (June 20), bitcoin (BTC) declined by 0.25%. Following a 0.28% loss on Wednesday, BTC ended the session at $64,862. Significantly, BTC ended the session at sub-$65,000 for the first time since May 14.

Investor sentiment toward the Fed rate path continued impacting buyer demand for US BTC-spot ETFs and BTC.

US initial jobless claims fell to 238k, indicating a stable labor market and reducing expectations for a September Fed rate cut.

The CME FedWatch Tool indicated a 35.9% chance of the Fed maintaining interest rates in September, up from 33.0% on Thursday.”

Rising US 10-year Treasury yields reflected the uncertainty about a September Fed rate cut, advancing by 48 basis points to 4.263%. Conversely, the S&P 500 and the Nasdaq Composite Index declined by 0.25% and 0.79%, respectively. The Dow advanced by 0.77%.

Investor sentiment regarding the Fed’s rate path continued to impact demand for US BTC-spot ETFs and BTC.

Can the US BTC-Spot ETF Market See Net Inflows?

The US BTC-spot ETF market experienced total net outflows of $152.4 million on Tuesday, June 18, marking the fourth consecutive session of outflows. (The US markets were closed on Wednesday, June 19).

The US BTC-spot ETF market faces a fifth successive day of total net outflows on Thursday.

According to Farside Investors:

  • Grayscale Bitcoin Trust (GBTC) saw total net outflows of $53.1 million.
  • Fidelity Wise Origin Bitcoin Fund (FBTC) had total net outflows of $51.1 million.
  • Excluding flow data for iShares Bitcoin Trust (IBIT) and five other issuers, the US BTC-spot ETF market saw total net outflows of $107.9 million on Thursday.

US private-sector PMIs on Friday, June 21, will need to support a September Fed rate cut to halt the spot ETF market outflow streak. A hotter-than-expected US S&P Global Services PMI could extend the US BTC-spot ETF market outflow streak to six sessions.

Economists forecast the US S&P Global Services PMI to fall from 54.8 to 53.7 in June.

Technical Analysis

Bitcoin Analysis

BTC hovered below the 50-day EMA but held above the 200-day EMA, signaling bearish near-term trends but bullish longer-term trends.

A BTC break above the 50-day EMA could allow the bulls to target the $69,000 resistance level. A breakout from the $69,000 resistance level could signal a move toward the $73,808 all-time high.

US Services PMI numbers and US BTC-spot ETF flow data require investor attention.

On the other hand, if BTC falls through the $64,000 support level, it could signal a drop to the $60,365 support level.

With a 38.16 14-Daily RSI reading, BTC could fall below the $64,000 support level before entering oversold territory.

BTC Daily Chart sends bearish near-term price signals.
BTCUSD Daily Chart 210624

Ethereum Analysis

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

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

US ETH-spot ETF-related chatter needs consideration.

Conversely, an ETH fall through 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, 46.84, suggests an ETH fall to the $3,244 support level before entering oversold territory.

ETH Daily Chart sends bullish price signals.
ETHUSD Daily Chart 210624

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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