Key Points:
- Despite its strength, Bitcoin Falls Despite Strong lost 1.59% on Thursday (May 23), closing the day at $67,953.
- US labour market and Services PMI numbers impacted buyer demand for BTC, while Ethereum (ETH) trended higher after the SEC approved the first US ETH-spot ETF.
- On Friday (May 24), FOMC member commentary, ETH-spot ETF-related news, and BTC-spot ETF market flow trends need consideration.
SEC Approves First ETH-Spot ETF
The Ethereum (ETH) price increased by 1.29% and ended the day on Thursday (May 23) at $3,785. Hearing that the SEC approved the VanEck Ethereum ETF caused investors to react. It has been reported by Bloomberg Intelligence ETF Analyst James Seyffart, who stated. Nevertheless, the VanEck Ethereum ETF is not prepared to debut. Please accept the S1 documents so that VanEck can launch the ETF. The SEC has already received the 19b-4.
According to Seyffart, the SEC may take a few weeks or more to approve the S-1. Instantaneously following the 19b-4’s SEC approval, VanEck submitted the ETH-spot ETF S1 Form. Investors cannot assess demand until the ETH-spot ETFs are launched. The price of Ethereum can be drastically affected by inflow patterns comparable to those in the US Bitcoin Falls Despite Strong Spot ETF market. Even if Ethereum (ETH) had a good session after Thursday, bitcoin (BTC) had a negative one.
The US Services PMI, the US Labor Market, and the US BTC-Spot ETF Market
Bitcoin (BTC) experienced a 1.59% decline on Thursday, May 23. After losing 0.84 per cent on May 22, Bitcoin Falls Despite Strong closed the day at $67,953. The US labour market and Services PMI data impacted the demand for risky assets, which lowered investor bets for a September Fed rate cut. In May, the US S&P Global Services PMI more than doubled, jumping from 51.3 to 54.8. The number of Americans filing for unemployment benefits fell from 225,000 the week ending May 18 to 215,000.
On Thursday (May 23), the CME FedWatch Tool showed that the likelihood of the Fed remaining unchanged in September increased from 41.9% to 48.4%. Still, Thursday (May 23) was probably a day of total net inflows for the US Bitcoin spot ETF market.
According to Farside Investors,
- Grayscale Bitcoin Trust (GBTC) saw net outflows of $13.7 million.
- Fidelity Wise Origin Bitcoin Fund (FBTC) reported net inflows of $19.1 million, down from $74.6 million on Wednesday.
- ARK 21Shares Bitcoin ETF (ARKB) and Invesco Galaxy Bitcoin ETF (BTCO) had net inflows of $2 million and $2 million, respectively.
- Excluding iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market saw total net inflows of $18.9 million, signalling a nine-day inflow streak.
The Friday Session
Finalized Michigan consumer survey results, comments from FOMC members, and US core durable goods orders are all items that must be considered on Friday, May 24. Positive data may cause investors to reevaluate their predictions for a rate cut by the Federal Reserve in September. A more aggressive path for Fed rates might impact buyer demand for Bitcoin Falls Despite Strong and the crypto market. However, the SEC’s decision will interest investors in the ARK 21Shares Ethereum ETF. May 24, 2024, is the last day to submit payments.
Technical Analysis
Bitcoin Analysis
Bitcoin’s price remained above the exponential moving averages (EMAs) of 50 and 200 days, which has been a bullish indicator. The $70,000 handle could be within reach for Bitcoin bulls if the price breaks above the $69,000 resistance level. The all-time high of $73,808 would be within reach, with a return to $70,000. Data on the US Bitcoin spot ETF market flow and the US economic calendar must be considered.
The 50-day exponential moving average (EMA) and the $64,000 support level are potential targets if Bitcoin prices fall below the $65,000 handle. Assuming a 14-day RSI reading of 56.74, Bitcoin (BTC) might hit overbought levels before retesting its all-time high of $73,808.
Ethereum Analysis
ETH’s steady stance above the 50-day and 200-day exponential moving averages (EMAs) confirmed the positive price indications. Ethereum might reach the $4,000 mark if it breaks above the $3,835 resistance level. If the $4,000 level is re-established, it may indicate a rise to the $4,091 high reached in March. We must consider the SEC’s ARK 21Shares Ethereum ETF application ruling. On the flip side, if ETH Bitcoin Falls Despite being Strong below the $3,750 handle, it could mean that the $3,480 support level is next on the down. Ethereum is trading overbought according to the 14-period Daily RSI reading of 71.62. The $3,835 resistance level can lead to a rise in selling pressure.
