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Bitcoin (BTC) News Today: US Political Shifts and ETF Dynamics Stir BTC Market

By:
Bob Mason
Updated: May 29, 2024, 02:44 GMT+00:00

Key Points:

  • Bitcoin (BTC) declined by 1.50% on Tuesday (May 28), ending the session at $68,327.
  • Market sentiment toward the Fed interest rate trajectory and a shifting US crypto political landscape delivered a choppy session.
  • On Wednesday (May 29), investors should consider US BTC-spot ETF market flow data and ETH-spot ETF-related chatter.
Bitcoin (BTC) News Today

In this article:

US Economic Indicators and US Politics Take Center Stage

On Tuesday (May 28), bitcoin (BTC) declined by 1.50%. Reversing a 1.35% gain from Monday (May 27), BTC ended the session at $68,327.

An unexpected rise in US consumer confidence and hawkish Fed chatter impacted buyer demand for BTC. The CB Consumer Confidence Index increased from 97.0 to 102.0 in May. An improving consumer confidence environment could fuel consumer spending and demand-driven inflation. The Fed could delay the timing of rate cuts to impact disposable income and consumer spending.

Furthermore, FOMC member Neel Kashkari spoke on Tuesday, wanting to see more progress on taming inflation before supporting rate cuts. A more hawkish Fed rate path could affect buyer appetite for riskier assets.

However, hopes of a shift in sentiment toward crypto on Capitol Hill could counter the effects of a hawkish Fed interest rate trajectory.

On Tuesday, Ripple CEO Brad Garlinghouse reflected on the possible shift in US political sentiment toward cryptos, saying,

“For the first time in US history, crypto voters will be a significant force in this year’s election.”

In 2023, Coinbase (COIN) CEO Brian Armstrong and 40 crypto founders were on Capitol Hill raising crypto awareness. Kickstarting the #StandWithCrypto campaign, crypto leaders highlighted that 52 million Americans owned digital assets.

The numbers may have increased significantly since the launch of the US BTC-spot ETFs. Since launching on January 11, the US BTC-spot ETF market saw total net inflows of $13,628.5 million.

Republican Party front-runner Donald Trump recognized the significance of the crypto vote. In May, Trump targeted crypto voters, saying,

“If you like crypto in any form…and it comes in many forms…if you’re in favor of crypto, you better vote Trump.”

Nevertheless, uncertainty about the Fed interest rate trajectory influenced buyer demand for US BTC-spot ETFs.

US BTC-Spot ETF Inflow Streak Hinged on iShares Bitcoin Trust

Going into the Tuesday session, the US BTC-spot ETF market had enjoyed a 10-day inflow streak. However, flow data for the Tuesday session showed a marked pullback in demand.

According to Farside Investors,

  • Grayscale Bitcoin Trust (GBTC) saw net outflows of $105.2 million after zero net flows on Friday (May 24).
  • Fidelity Wise Origin Bitcoin Fund (FBTC) reported net inflows of $34.3 million, down from $43.7 million on Friday.
  • Five issuers reported net inflows excluding numbers from BlackRock (BLK) and Valkyrie.
  • Excluding flow data for iShares Bitcoin Trust (IBIT) and Valkyrie Bitcoin Fund (BRRR), the US BTC-Spot ETF market saw total net outflows of $58.7 million. On Friday, the spot market saw total net inflows of $251.9 million.

Technical Analysis

Bitcoin Analysis

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

A BTC break above the $69,000 resistance level would support a move toward the $73,808 all-time high.

FOMC member chatter, US BTC-spot ETF market flow data, and US lawmakers need consideration.

Conversely, a BTC drop below the $67,500 handle could give the bears a run at the 50-day EMA.

With a 56.21 14-Daily RSI reading, BTC could return to the all-time high of $73,808 before entering overbought territory.

BTC Daily Chart sends bullish price signals.
BTCUSD Daily Chart 290524

Ethereum Analysis

ETH hovered well above the 50-day and 200-day EMAs, confirming the bullish price trends.

An ETH breakout from the $3,835 resistance level would support a move to the $4,000 handle. A break above the $4,000 handle could signal a return to the March high of $4,091.

US ETH-spot ETF market-related updates need consideration.

Conversely, an ETH fall below the $3,750 handle could give the bears a run at the $3,480 support level.

The 14-period Daily RSI reading, 68.50, suggests an ETH return to $4,000 before entering overbought territory.

ETH Daily Chart sends bullish price signals.
ETHUSD Daily Chart 290524

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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