Bitcoin (BTC) News Today: US CPI Report and ETF Inflows: Will Bitcoin Break $60,000?

Bob Mason
Updated: Jul 11, 2024, 07:41 GMT+00:00

Key Points:

  • Bitcoin (BTC) declined by 0.44% on Wednesday, July 10, ending the session at $57,827.
  • The German government gave up its Bitcoin Billionaire status on Wednesday, affecting buyer demand for BTC.
  • On Thursday, July 11, the US CPI Report could influence buyer demand for US BTC-spot ETFs and BTC.
Bitcoin (BTC) News Today

In this article:

On Wednesday, July 10, the German government impacted BTC price trends. Will the US CPI Report and BTC-spot ETF market fuel a BTC breakout on Thursday, July 11?

US BTC-Spot ETF Market Inflow Streak Continues

On Wednesday, BTC declined by 0.44%. Partially reversing a 2.32% rally from Tuesday, July 9, BTC ended the session at $57,827. Notably, BTC revisited the $59,000 handle for the first time in six sessions.

On Wednesday, the US BTC-spot ETF market extended its net inflow streak to four sessions.

According to Farside Investors,

  • On Wednesday, Grayscale Bitcoin Trust (GBTC) saw net outflows of $8.2 million.
  • Fidelity Wise Origin Bitcoin Fund (FBTC) reported net inflows of $57.8 million.
  • Franklin Bitcoin ETF (EZBC) had net inflows of $31.7 million, its highest since May 3.
  • Excluding iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market had $46.7 million in net inflows. On Tuesday, the total net inflows were $216.4 million.
  • Six issuers reported net inflows, excluding IBIT, the most since July 1.

US BTC-spot ETF inflows aligned with the US equity markets. On Wednesday, the Nasdaq Composite Index rallied 1.18%, and 10-year Treasury yields dropped 12 basis points as investors reinforced their bets on a September Fed rate cut.

Fed Rate Cut Bets Remain Intact

According to the CME FedWatch Tool, the probability of a September Fed rate cut increased from 73.2% on Tuesday, July 9, to 73.3% on Wednesday, July 10.

Investors viewed Fed Chair Powell’s testimony on Capitol Hill as positive. On Wednesday, Powell reiterated that the US economy remained on track to return to the Fed’s 2% target.

However, the US CPI Report on July 11 is crucial: Soft inflation may cement bets on a September rate cut. High inflation could lower expectations of a 2024 rate cut.

The US BTC-spot ETF market and BTC are likely to be sensitive to the US CPI Report and shifting sentiment about the Fed’s rate path.

Declining demand may return attention to oversupply risks.

German Government BTC Sales Impact Supply-Demand Dynamics

On Wednesday, Arkham Intelligence reported that the German government sold more BTC, stating,

“The German Government lost its Bitcoin Billionaire status today.”

Post-sale holdings were 15,552 BTC ($893.77M), down from 23,964 BTC ($1.38B) on July 9.

German government BTC holdings fall on Wednesday.
German Government BTC Holdings 110724

The impact of the German government offload was relatively minor. Arkham Intelligence also reported that Blackrock (BLK) was buying. The iShares Bitcoin Trust ETF saw net inflows of $187.2 million on Monday and $121.0 million on Tuesday. Another sizeable haul on Wednesday could rebalance supply and demand.

However, the US CPI Report could significantly affect the supply-demand dynamic. Higher US inflation may reduce buyer demand for US BTC-spot ETF, while German BTC sales might continue.

Considering the supply and demand dynamics, investors should stay alert. Monitor real-time data and expert commentary to adjust your trading strategies accordingly. Stay informed with our latest updates and insights to navigate the crypto market.

Technical Analysis

Bitcoin Analysis

BTC sat below the 50-day and 200-day EMAs, sending bearish price signals.

A BTC break above the 200-day EMA would support a move to the $60,365 resistance level. Furthermore, a BTC breakout from the $60,365 resistance level could give the bulls a run at the 50-day EMA.

On Thursday, US inflation numbers, German government BTC sales, and US BTC-spot ETF market flows require consideration.

On the other hand, a drop below $55,000 could give the bears a run at the $52,884 support level.

With a 37.73 14-Daily RSI reading, BTC could drop below the $55,000 handle before entering oversold territory.

BTC Daily Chart sends bearish near-term price signals.
BTCUSD Daily Chart 110724

Ethereum Analysis

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

A move above the $3,244 resistance level would bring the 50-day EMA into play. Furthermore, an ETH break above the 50-day EMA could signal a move to the $3,480 resistance level.

US ETH-spot ETF market-related updates also require consideration.

Conversely, an ETH drop below the 200-day EMA and $3,033 support level would bring the $2,800 handle into view.

The 14-period Daily RSI reading, 39.23, indicates an ETH drop to $2,800 before entering oversold territory.

ETH Daily Chart sends bullish longer-term price signals.
ETHUSD Daily Chart 110724

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.