Bitcoin News Today: BTC’s Three-Day Winning Streak Ends Amid ETF Flows

Key Insights:

• BTC declined by 0.93% on Saturday, ending the session at $51,697.
• US producer prices and BTC-spot ETF market data for Friday likely contributed to the loss.
• On Sunday, BTC-spot ETF market-related chatter and sentiment toward Fed rate cuts could influence investor sentiment.

BTC Ends a Three-Day Winning Streak

On Saturday, BTC declined by 0.93%. Reversing a 0.45% gain from Friday, BTC ended the session at $51,697. Significantly, BTC ended a three-day winning streak.

BTC-Spot ETF Market: Net Inflows Impact BTC Price Trends

On Saturday, investors reacted to BTC-spot ETF market flow data for February 16. Inflows retreated to the lowest level for the week, impacting buyer demand for BTC.

Net inflows declined from $477 million (February 15) to $331 million (February 16), according to BitMEX Research.

iShares Bitcoin Trust (IBIT) led the way for the seventh consecutive session. However, net IBIT inflows fell to their lowest ($191.4 million) since February 7. ARK 21Shares Bitcoin ETF (ARKB) outmuscled Fidelity Wise Origin Bitcoin Fund (FBTC) into the number two spot, with net inflows of $140 million.

Bitwise Bitcoin ETF (BITB) saw net inflows slide after a positive Thursday session. Nonetheless, Grayscale Bitcoin Trust (GBTC) saw net outflows decline modestly.

US economic indicators and sentiment toward Fed monetary policy may have impacted flows on Friday.

US Economic Indicators and H1 2024 Fed Rate Cuts

On Friday, US producer price figures for January impacted market bets on an H1 2024 Fed rate cut. Producer prices increased by 0.3%, reversing a 0.1% fall from December. Core producer prices rose by 0.5% after falling by 0.1% in December. Economists expected producer and core producer prices to increase by 0.1%.

The larger-than-expected increase signaled a pickup in demand that could fuel demand-driven inflation. Upward trends in demand-driven inflation may influence the timeline for a Fed rate cut.

Recent US inflation numbers eroded bets on a March Fed rate cut. According to the CME FedWatch Tool, the probability of a March Fed rate cut fell from 16.0% to 10.0% in the week ending February 16. The chances of a May Fed rate cut fell from 52.2% to 35.2% over the week.

However, the chances of a 25-basis point June rate cut increased from 41.9% to 53.7% in the week ending February 16.

Bitcoin Fear & Greed Index Returns to the Greed Zone

The influences of the Fed and pullback in BTC-spot ETF market inflows affected investor sentiment. On Sunday, the Bitcoin Fear & Greed Index fell from 76 to 72. Significantly, the Index fell from the Extreme Greed to the Greed zone.

Despite the return to the Greed zone, the Fear & Greed Index continues to signal positive investor sentiment. However, a continued downward trend may reflect a shift in sentiment. An Index falling into the Neutral zone could change the narrative.

US economic indicators, the FOMC meeting minutes, Fed speakers, and BTC-spot ETF-related updates will need consideration next week.

Technical Analysis

Bitcoin Analysis

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

A BTC break above the Thursday high of $52,869 would bring the $55,000 handle into play.

BTC-spot ETF market-related commentary and updates need consideration.

However, a fall below the $51,000 handle would give the bears a run at the $50,500 support level.

The 14-Daily RSI reading, 77.58, shows BTC in overbought territory. Selling pressure may intensify at the $52,000 handle.

Ethereum Analysis

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

An ETH breakout from the Thursday high of $2,867 would support a move to the $3,000 handle.

ETH-spot ETF-related news remains a consideration.

However, an ETH fall through the $2,750 handle would bring the $2,650 support level into view.

The 14-period Daily RSI at 73.99 shows ETH in overbought territory. Selling pressure could intensify at the $2,800 handle.