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Bitcoin News Today: Subdued BTC-Spot ETF Inflows Impact BTC Trends

By:
Bob Mason
Published: Feb 24, 2024, 06:07 UTC

Key Points:

  • On Friday, BTC declined by 1.09%, ending the session at $50,763.
  • BTC-spot ETF market flow data contributed to BTC's decline for the third consecutive session.
  • On Saturday, BTC-spot-ETF flow data for Friday and regulatory chatter need consideration.
Bitcoin News Today

In this article:

BTC-Spot ETF-Market Sees Net Inflows Slide in the Week

On Friday, BTC declined by 1.09%. Following a 1.11% loss from Thursday, BTC ended the session at $50,763.

Investors reacted to BTC-spot ETF market flow data for the Thursday and Friday sessions. The BTC-spot ETF market recovered from net outflows on Wednesday (February 2). On Thursday, the BTC-spot ETF market saw net inflows of $251.4 million.

Significantly, Fidelity Wise Origin Bitcoin Fund (FBTC) ranked number one by net inflows, overtaking iShares Bitcoin Trust (IBIT). FBTC last outmuscled IBIT on February 7. Nonetheless, IBIT and FBTC continue to corner the US BTC-spot ETF market, accounting for 81% of total net inflows.

BTC-spot ETF market inflows recover on Friday.
BitMEX Research Net Inflows for 24/02/24

BTC-spot ETF flow data for Friday (February 23) remained below levels from the previous week and were lower than net inflows on Thursday.

According to Farside Investors, the BTC-spot ETF market saw total net inflows of $232.5 million on Friday (February 23). Notably, IBIT reclaimed the top position, with net inflows of $167.5 million. FBTC saw net inflows slide to $52.5 million.

Grayscale Bitcoin Trust (GBTC) net outflows trended lower, painting a rosier outlook for the week ahead.

BTC-spot ETF net inflows remained subdued on Friday.
Farside Investors Net Flows for 25/02/24

Beyond the BTC-spot ETF market, SEC v crypto case-related news drew investor interest.

Kraken Motion to Dismiss Raises Further Questions for the SEC

On Thursday, Kraken filed a Motion to Dismiss, setting another high-profile case for the crypto market to consider. Kraken also posted a blog on Kraken BLOG detailing the SEC case against it and the rationale behind the Motion to Dismiss. Significantly, Kraken highlighted that the SEC notified Kraken about plans to sue one day after Kraken testified that,

“In any new set of crypto exchange rules, Congress should limit the SEC’s jurisdiction in favor of other agencies.”

Regarding the Motion to Dismiss, Kraken stated,

“The SEC never points to any “contract” between buyers on Kraken and token issuers, so there can’t be an “investment contract. None of the assets in the SEC’s Complaint are investment contracts under the law. For eight decades, the U.S. Supreme Court and Ninth Circuit (where this case was filed) have always required that the SEC identify a contract when finding the existence of an investment contract.”

Kraken added,

“The SEC doesn’t do this in its case against Kraken. Instead, it asks the Court to endorse a new theory: Anything that may increase in value in an “ecosystem” can be an investment contract. With no precedent to defend this self-serving attempt at expanding its jurisdiction, the SEC instead relies on ambiguity and contradiction.”

The SEC does not consider bitcoin a security. However, a US crypto regulatory framework could fuel demand for BTC and altcoins.

Technical Analysis

Bitcoin Analysis

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

A BTC break above the $51,500 handle would support a move to the $53,000 resistance level and the Tuesday high of $53,026.

BTC-spot ETF market-related news and US regulatory chatter need consideration.

However, a break below the $50,500 support level would give the bears a run at the $48,178 support level.

The 14-Daily RSI reading, 65.28, indicates a BTC return to the $53,000 resistance level before entering overbought territory.

 

BTC Daily Chart sends bullish price signals.
BTCUSD 240224 Daily Chart

Ethereum Analysis

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

An ETH break above the Thursday high of $3,032 would bring the $3,200 resistance level into play.

ETH-spot ETF-related updates warrant investor attention.

However, an ETH drop below the $2,900 handle would support a fall toward the $2,770 support level.

The 14-period Daily RSI at 71.88 shows ETH in overbought territory. Selling pressure could intensify at the Thursday high of $3,032.

ETH Daily Chart sends bullish price signals.
ETHUSD 240224 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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