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Bitcoin (BTC) News Today: US BTC-Spot ETF Market Sinks BTC in Reaction to the Fed

By:
Bob Mason
Updated: May 2, 2024, 02:24 GMT+00:00

Key Points:

  • Bitcoin (BTC) declined by 3.65% on Wednesday (May 1), ending the session at $58,917.
  • The FOMC press conference and the US BTC-spot ETF market flow data left BTC in negative territory.
  • On Thursday (May 2), investors should consider US labor market data and US BTC-spot ETF market flow data.
Bitcoin (BTC) News Today

In this article:

Bitcoin (BTC) declined by 3.65% on Wednesday (May 1). Following a 5.02% slide on Tuesday (April 30), BTC ended the session at $58,917. Significantly, BTC last closed out a session at sub-$60,000 on February 27.

The FOMC interest rate decision and press conference delivered a choppy end to a negative bitcoin session.

US BTC-spot ETF market flow trends for Tuesday (April 30) set the tone for the Wednesday session. According to Farside Investors, the US spot ETF market saw total net outflows of $161.6 million.

  • iShares Bitcoin Trust (IBIT) saw zero net flows for the fifth session.
  • Fidelity Wise Origin Bitcoin Fund (FBTC) recorded net outflows for the fourth session.
  • Grayscale Bitcoin Trust (GBTC) saw net outflows of $93.2 million, up from the previous day’s $24.7 million.

Pre-Fed investor jitters impacted buyer demand for US BTC-spot ETFs. However, market conditions deteriorated late into the Wednesday session.

The FOMC Interest Rate Decision, the Press Conference, and the US BTC-Spot ETF Market

On Wednesday (May 1), the Fed left interest rates unchanged at a target range of 5.25-5.50%. While in line with market expectations, the policy decision drove buyer demand for BTC and the broader crypto market.

The FOMC press conference was also crypto-market friendly. Fed Chair Powell highlighted the lack of progress in bringing inflation to the 2% target. Nevertheless, Powell poured cold water on expectations of a Fed interest rate cut. The press conference was not as hawkish as the markets had feared.

Fed influence on BTC.
BTCUSD 30 Minute Chart 020524

The US BTC-spot ETF market reacted to the press conference and tweaks to the Fed rate path.

According to Farside Investors, the US BTC-spot ETF market saw net outflows of $511.7 million on Wednesday (May 1), excluding spot ETF flow data for IBIT, Invesco Galaxy Bitcoin ETF (BTCO), and Valkyrie Bitcoin Fund (BRR).

  • GBTC saw net outflows of $167.4 million, up from $93.2 million on April 30.
  • FBTC recorded net outflows of $191.1 million, the most marked since launching on January 11. Significantly, FBTC saw net outflows for the fifth session.
  • ARK 21Shares Bitcoin ETF (ARKB) saw net outflows of $98.1 million.
  • Six of the seven ETFs with up-to-date flow data saw net outflows on Wednesday (May 1).

Bloomberg Intelligence ETF Analyst James Seyffart reacted to the flow data and third-party sources for IBIT numbers, saying,

“Andddd IBIT has its first outflow day of its existence. Ruff day to be a bitcoin ETF.”

According to Tree News, IBIT saw net outflows of $36.9 million on Wednesday (May 1).

There was no trading on the Hong Kong BTC and ETH-spot ETF markets. The HK markets were closed for the Labor Day holiday.

Technical Analysis

Bitcoin Analysis

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

A BTC breakout from the $60,365 resistance level would give the bulls a run at the 50-day EMA and the $64,000 resistance level. Selling pressure could intensify at the $64,000 resistance level. The 50-day EMA is confluent with the resistance level.

On Thursday, US labor market data and BTC-spot ETF flow data from HK and the US need consideration.

Conversely, a BTC fall through the $55,000 handle could give the bears a run at the $52,884 support level.

With a 31.71 14-Daily RSI reading, BTC could drop to the $55,000 handle before entering oversold territory.

BTC Daily Chart sends bearish near-term price signals.
BTCUSD Daily Chart 020524

Ethereum Analysis

ETH remained below the 50-day EMA while hovering above the 200-day EMA. The EMAs confirmed the bearish near-term but bullish longer-term price trends.

An ETH break above the $3,033 resistance level would support a move to the 50-day EMA and the $3,244 resistance level. Selling pressure may increase at the $3,244 resistance level. The 50-day EMA is confluent with the resistance level.

Conversely, an ETH fall through the 200-day EMA would give the bears a run at the $2,664 support level.

The 14-period Daily RSI reading of 37.17 indicates an ETH drop to the 200-day EMA before entering oversold territory.

ETH Daily Chart sends bearish near-term price signals.
ETHUSD Daily Chart 020524

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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