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Bitcoin News Today: Rebound in BTC-Spot Inflows Brings $55,000 into View

By:
Bob Mason
Published: Feb 23, 2024, 04:36 UTC

Key Points:

  • On Thursday, BTC fell by 1.11%, ending the session at $51,320.
  • BTC-spot ETF market outflows from Wednesday impacted buyer demand for BTC.
  • On Friday, investors must consider BTC-spot-ETF flows for Thursday and US lawmaker chatter.
Bitcoin News Today

In this article:

BTC-Spot ETF-Market Sees Net Outflows on Wednesday

On Thursday, BTC fell by 1.11%. Following a 0.74% decline on Wednesday, BTC ended the session at $51,320.

The crypto market reacted to BTC-spot ETF market flows for the Wednesday session. Net inflows fell sharply on Tuesday. However, the BTC-spot ETF market saw net outflows for the first time since January 25 on Wednesday (February 21).

Grayscale Bitcoin Trust (GBTC) reported net outflows of $199.3 million, up from $137.0 million on Tuesday (February 20). Significantly, iShares Bitcoin Trust (IBIT) saw net inflows fall below $100 million for the first time since February 7 and for only the fifth time since launching on January 11.

Bitwise Bitcoin ETF (BITB) saw net inflows fall to zero after seeing net inflows of $120.2 million on February 15. Fidelity Wise Origin Bitcoin Fund (FBTC) saw net inflows of $52.5 million, the fourth lowest since launch.

BTC-spot ETF market saw net outflows on Wednesday.
BitMEX Flows 23/02/24

However, preliminary flow data for February 22 paint a rosier picture. According to BitMEX Research, GBTC saw net outflows slide from $199.3 million to $55.7 million on February 22. Significantly, FTBC saw net inflows rebound on Thursday, rising from $52.5 million to $158.9 million.

Figures for IBIT are not available. However, the BTC-spot ETF market looks set to support buyer appetite for BTC. Excluding IBIT numbers, the BTC-spot ETF market saw net inflows of $126.3 million.

ECB Targets the BTC-Spot ETF Market

The spot-ETF market flows continue to influence broader crypto market trends. However, the ECB drew criticism from the crypto market on Thursday. BitMEX Research reacted to a post from the ECB, saying,

“Never mind the ECB’s expected negative take on Bitcoin, they also seem not to understand ETFs. An ETF with “only one asset.”

BitMEX Research laid out a long list of single-asset ETFs, including gold, silver, copper, platinum, carbon, and oil.

The reaction was to an ECB statement that read,

“An ETF with only one asset turns its actual financial logic on its head (although there are others in the United States). ETFs normally aim to diversify risk by holding many individual securities in the market.”

Bloomberg Intelligence Senior ETF Analyst Eric Balchunas had this to say about the latest ECB swipe at BTC,

“The European Central Bank woke up and chose violence: says bitcoin has failed on its promise, its fair value is still zero, causes environmental damage, and is a market for snake oil salesmen. Says ETF rally is just a dead cat bounce.”

On February 22, the ECB published a blog criticizing the approval of BTC-spot ETFs. Significantly, the ECB reiterated that the fair value of Bitcoin remained zero. The criticism came despite the EU leaping ahead of the US with a proposed crypto regulatory framework.

Technical Analysis

Bitcoin Analysis

BTC hovered above the 50-day and 200-day EMAs, affirming bullish price signals.

A BTC break above the $53,000 resistance level would support a move toward the $57,000 handle.

BTC-spot ETF market flow data and lawmaker chatter need consideration.

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

The 14-Daily RSI reading, 67.41, suggests a BTC move to the $53,000 resistance level before entering overbought territory.

BTC Daily Chart sends bullish price signals.
BTCUSD 230224 Daily Chart

Ethereum Analysis

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

An ETH breakout from the Thursday high of $3,032 would support a move to the $3,200 resistance level.

ETH-spot ETF-related news needs monitoring.

However, an ETH fall below the $2,900 handle would bring the $2,800 handle and the $2,770 support level into play.

The 14-period Daily RSI at 73.65 shows ETH in overbought territory. Selling pressure may intensify at the Thursday high of $3,032.

ETH Daily Chart sends bullish price signals.
ETHUSD 230224 Daily Chart

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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