Bitcoin News Today: BTC-Spot ETF Flows and the US Inflation Effect

Key Insights:

• BTC declined by 0.27% on Tuesday, ending the session at $49,710.
• US inflation numbers ended an eight-day winning streak.
• On Wednesday, BTC-spot ETF-related news, US lawmakers, and SEC activity warrant investor attention.

The US CPI Report Ends an Eight-Day Winning Streak

On Tuesday, BTC declined by 0.27%. Partially reversing a 3.49% rally from Monday, BTC ended the Tuesday session at $49,710. Significantly, a hotter-than-expected US CPI Report sent BTC to a session low of $48,300 before steadying. However, BTC ended an eight-day winning streak.

US CPI Report Reduced Bets on Fed Rate Cuts in H1 2024

The US annual inflation rate softened from 3.4% to 3.1% in January. Economists forecast the inflation rate to fall to 2.9%. The core inflation rate held steady at 3.9%. Economists expected the core inflation rate to decline to 3.7%.

BTC slid to a post-CPI Report session low of $48,300 before retaking the $49,700 handle. Significantly, BTC showed resilience to the shift in sentiment toward Fed interest rate cuts. The Nasdaq Composite Index ended the Tuesday session down 1.80%.

Significantly, BTC-spot ETF market flow figures for February 12 and incoming numbers for February 13 offset the shift in sentiment toward Fed interest rate cuts.

BTC-Spot ETF Inflows: iShares Bitcoin ETF (IBIT) Leads the Way

BTC-spot ETF market net inflows declined from $541.5 million (February 9) to $493.3 million (February 12), according to figures from BitMEX Research.

Despite the decline in net inflows from Friday (February 9), total net inflows were the third highest since the launch of the Nine on January 11.

iShares Bitcoin Trust (IBIT) registered net inflows of $374.7 million, the second highest since launch. Fidelity Wise Origin Bitcoin Fund (FBTC) saw net inflows of $151.9 million. However, Invesco Galaxy Bitcoin ETF (BTCO) saw net outflows ($20.8 million) for the second consecutive session.

IBIT and FBTC also led the way in total net inflows. On Monday, IBIT saw total net inflows reach $4,125.2 million, with FBTC net inflows rising to $3,155.1 million.

Bloomberg Intelligence ETF Senior Analyst shared a chart showing net cumulative flows, saying,

“The NET cumulative flows for the 10 bitcoin ETFs (incl. GBTC) has doubled in past 3 days to over $3b (for context it took GLD nearly 2yrs to get to this point) after another half a billion yesterday. The Nine alone are nearing $10b in flows.”

Early Flow Data for February 13 Signal Strong Total Net Inflows

On Tuesday, BitMEX Research also shared net inflow numbers for February 13. Notably, net inflows for FBTC increased to $163.6 million. Grayscale Bitcoin Trust (GBTC) saw net outflows fall from $95 million to $72.8 million.

The early figures suggest another impressive day of net inflows despite the hotter-than-expected US CPI Report.

Technical Analysis

Bitcoin Analysis

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

A BTC breakout from the $50,500 resistance level would give the bulls a run at the $52,500 handle.

BTC-spot ETF market flows and SEC activity need consideration.

However, a fall through the $49,000 handle would give the bears a run at the $48,178 support level.

The 14-Daily RSI reading, 73.88, shows BTC in overbought territory. Selling pressure may intensify at the $50,500 resistance level.

Ethereum Analysis

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

An ETH break above the $2,650 resistance level would support a move toward the January high of $2,714 and the $2,750 handle.

ETH-spot ETF-related news needs consideration.

However, an ETH fall through the $2,600 handle would bring the $2,457 support level into play.

The 14-period Daily RSI at 70.98 shows ETH in overbought territory. Selling pressure may intensify at the $2,650 resistance level.