Key Insights:
- BTC gained 2.91% on Wednesday, closing the session at $44,318.
- A surge in BTC-spot ETF trading volumes drove buyer demand for BTC.
- On Thursday, BTC-spot ETF updates, SEC activity, and US lawmakers need consideration.
BTC-Spot ETF Market Activity Sends BTC to $44,000
On Wednesday, BTC gained 2.91%. Following a 0.91% rise on Tuesday, BTC ended the Wednesday session at $44,318. Significantly, BTC held onto the $44,000 handle. Bitcoin last held onto the $44,000 handle on the day the SEC approved the first batch of BTC-spot ETF.
Net inflows declined from $68.1 million to $33.70 million on February 6. Investors responded to the latest numbers. BTC fell to an early session low of $42,763 before making a move.
iShares Bitcoin Trust (IBIT) continued to top the table for net inflows. However, net inflows of just $45.2 million were the lowest since launch.
Despite the downward trend in net inflows, more BTC-spot ETFs registered net inflows on Tuesday compared to three on Monday.
While the net inflow numbers for February 6 were disappointing, BTC-spot ETF trading volumes for February 7 were impressive.
Bloomberg Intelligence ETF Analyst James Seyffart shared trading volumes for February 7, saying,
“Big volume day for IBIT. Total volume over $1 billion for the group.”
IBIT saw volumes surge from $181.0 million on Tuesday to $341.2 million on Wednesday. Volumes may not be indicative of net inflows. Nonetheless, the sizeable increase could suggest a marked rise in net inflows. Volumes were also higher for Fidelity Wise Origin Bitcoin Fund (FBTC). Notably, trading volumes for the BTC-spot ETF market broke through the $1 billion threshold for the first time since January.
However, Grayscale Bitcoin Trust (GBTC) outflows for February 7 also needed consideration. According to BitMEX Research, GBTC registered $81 million in outflows, up from $72.7 million on February 6.
On Thursday morning, Seyffart shared a BTC-spot ETF-related data post from a BTC-spot ETF enthusiast, who shared a chart showing the entities with the largest BTC holdings.
According to the chart, the BTC-spot ETF market will overtake MicroStrategy (MSTR) in bitcoin holdings within 30 days of trading.
The association with MicroStrategy is significant. On December 27, MicroStrategy purchased 14,620 BTC for approximately $615.7 million, taking the total BTC tally to 189,150. BTC gained 2.11% on December 27 in response to the news.
In January, MicroStrategy acquired a further 850 BTC, taking total BTC holdings to 190,000. MicroStrategy CEO Michael Saylor announced the purchase on February 7, contributing to the session gains of 2.91%.
Technical Analysis
Bitcoin Analysis
BTC sat above the 50-day and 200-day EMAs, affirming bullish price signals.
A BTC return to the $45,000 handle would support a move to the $46,020 resistance level.
On Thursday, BTC-spot ETF market volumes and flows warrant investor attention.
However, a fall through the $44,690 support level would bring the $42,968 support level and the 50-day EMA into play.
The 14-Daily RSI reading, 62.58, suggests a BTC move to the $46,020 resistance level before entering overbought territory.
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Ethereum Analysis
ETH sat above the 50-day and 200-day EMAs, sending bullish price signals.
An ETH break above the $2,457 resistance level would support a move toward the $2,650 resistance level.
ETH-spot ETF-related news needs consideration.
However, an ETH drop below the $2,400 handle would bring the 50-day EMA and the $2,300 support level into play.
The 14-period Daily RSI at 59.07 suggests an ETH move to the $2,650 resistance level before entering overbought territory.
