US BTC-Spot ETFs Influence BTC Price Trends
On Wednesday, a tech sector rout overshadowed rising Fed support for an interest rate cut.
The Nasdaq Composite Index tumbled 2.77%. Reasons for the sell-off included possibly tighter US export controls on chipmaking-related equipment for China.
Risk aversion impacted demand for US BTC-spot ETFs on Wednesday.
According to Farside Investors,
- Grayscale Bitcoin Trust (GBTC) saw net outflows of $53.9 million.
- Fidelity Wise Origin Bitcoin Fund (FBTC) had net inflows of $2.8 million.
- Bitwise Bitcoin ETF (BITB) reported net outflows of $6.0 million.
- Excluding iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market saw $57.1 million in total net outflows.
The US BTC-spot ETF market could end an eight-day inflow streak if IBIT has modest inflows. Possible outflows coincided with news of Mt. Gox sending $48,641 BTC to Kraken for repayments to creditors.
Weaker demand for US BTC-spot ETFs and a surge in BTC supply from the Mt. Gox repayments could adversely impact BTC price trends.
US Economic Indicators and the Fed Rate Path
US labor market data will draw interest on Thursday, July 18.
Economists forecast Continuing Jobless Claims to increase from 1,852k in the week ending June 29 to 1,860k in the week ending July 6.
Weaker labor market conditions could fuel speculation of multiple 2024 Fed rate cuts.
A more dovish Fed rate path could reduce borrowing costs and drive demand for riskier assets.
However, investors must consider supply and demand trends alongside the US data. An oversupply would likely overshadow rising bets on multiple 2024 Fed rate cuts.
Investors should remain alert as Mt. Gox prepares to repay creditors. Monitor real-time data and expert commentary to adjust your trading strategies accordingly. Stay up-to-date with our latest news and analysis to manage crypto market risk.
Technical Analysis
Bitcoin Analysis
BTC sat above the 50-day and 200-day EMAs, affirming the bullish price signals.
A BTC return to $67,500 could signal a move to the $69,000 resistance level. A break above the $69,000 resistance level could give the bulls a run at the March 2024 all-time high of $73,808.
On Thursday, US economic data, Mt. Gox-related updates, and US BTC-spot ETF market flow data require consideration.
On the other hand, a break below the $64,000 support level could signal a drop to the 50-day EMA.
With a 59.67 14-Daily RSI reading, BTC may climb to the $69,000 resistance level before entering overbought territory.
