Bitcoin News Today: BTC Declines Amidst Spot ETF Market Inflows Retreat

BTC-Spot ETF-Market Inflows Retreat on Tuesday

On Wednesday, BTC declined by 0.74%. Partially reversing a 0.93% gain from Tuesday, BTC ended the session at $51,904.

BTC-spot ETF Market flows impacted buyer demand for BTC. Investors were slow to return to the crypto market after the US holiday. BitMEX Research shared flow data for the Tuesday (February 20) session.

Net inflows fell from $323.9 million (February 16) to $135.6 million (February 20). iShares Bitcoin Trust (IBIT) continued to lead the way, with net inflows of $154.3 million. Net inflows declined for a second successive session and fell to the lowest since February 7.

Fidelity Wise Origin Bitcoin Fund (FBTC) retook the number 2 spot, with net inflows of $71.7 million (February 20), down from $116.7 million (February 16). ARK 21Shares Bitcoin ETF (ARKB) also impacted the headline number, with net inflows retreating from $140.0 million (February 16) to $27.4 million (February 20).

According to early flow reports for February 21, the BTC-spot ETF market could register net outflows for the first time since January 25. Grayscale Bitcoin Trust (GBTC) saw net outflows rise from $137.0 million to $199.3 million on Wednesday, February 21.

However, flow data for the BTC-spot ETF market heavyweights is unavailable until later. IBIT, FBTC, and ARKB must see upswings in net inflows to support crypto market optimism.

ETH Coughs Up $3,000 on 50:50 Odds of Approval

ETH declined by 1.53% on Wednesday, ending the session at $2,968. Significantly, ETH slid to a session low of $2,870 before retaking the $2,900 handle.

50:50 odds on the SEC approving the first batch of ETH-spot ETFs in May failed to impress the crypto community. Eleanor Terrett, a Fox Business Journalist, recently shared the odds from several crypto experts. The crypto community considers amendment ETH-spot ETF filings as a positive sign.

However, SEC Chair Gary Gensler’s warning about expecting the SEC to approve more spot ETFs resonated. After the SEC voted to approve the BTC-spot ETFs, Gensler warned,

“Today’s spot Bitcoin ETF approvals mark a historic milestone for the future of the digital asset ecosystem. While action to provide clarity and certainty for digital assets remains necessary, the steps taken today are a significant improvement over regulation by enforcement.”

In contrast to the 50:50 odds, Bloomberg Intelligence Analysts James Seyffart and Eric Balchunas had a more optimistic 90% chance of the SEC approving the first batch of BTC-spot ETFs in the January window. However, more frequent amendment ETH-spot ETF filings could raise investor bets on the ECB approving the first batch in the May approval window.

Amendment filings tend to result from communications with the SEC.

Technical Analysis

Bitcoin Analysis

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

A BTC breakout from the Tuesday high of $53,019 would give the bulls a run at the $55,000 handle.

BTC-spot ETF market-related flows remain in focus.

However, a break below the $51,500 handle would support a fall to the $50,500 support level.

The 14-Daily RSI reading, 71.98, shows BTC in overbought territory. Selling pressure may intensify at the Tuesday high of $53,019 handle.

Ethereum Analysis

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

An ETH breakout from the Tuesday high of $3,032 would support a move to the $3,100 handle.

ETH-spot ETF-related activity needs monitoring.

However, an ETH break below the $2,900 handle would give the bears a run at the $2,800 handle.

The 14-period Daily RSI at 72.79 shows ETH in overbought territory. Selling pressure may intensify at the Tuesday high of $3,032.