On Monday (June 10), the price of Bitcoin (BTC) dropped 0.16% and closed the daily session at $69,570. Besides, the U.S. BTC-spot ETF market flow data has given the buyers a favorable chance over their rivals. The Fed is getting ready to reveal its monetary policy decisions and interest rate announcement on Tuesday (June 11). Thus, investor nervousness will negatively affect Bitcoin and the whole cryptocurrency market, primarily the buyer demand side.
First Outflows Since May 10 in the US BTC-Spot ETF Market
Bitcoin (BTC) had a value decrease of 0.16% on Monday, June 10. Bitcoin ended the day at $69,570 after gaining just 0.43% of the amount from the previous day, which was Sunday, June 9. Fed Fear was a factor that slowed down the purchasing of Bitcoin and the overall cryptocurrency market. Investors expected the Federal Open Market Committee (FOMC) interest rate decision, economic estimates, and the press conference.
The latest US labor market data softened investors’ hopes of a September rate hike by the Federal Reserve. On Monday, the meeting that would allow the Fed to announce the interest rate hike caused investors to change their sentiment. According to the data passed on by the CME FedWatch Tool, the chance the Fed will stay put came from 49.5% to 51.0%, respectively, by 9/9/20. About the demand for BTC-Spot ETF in the US, Farside Investors states that investors are vague about what goals the Fed will pursue.
- Grayscale Bitcoin Trust (GBTC) saw net outflows of $39.5 million on Monday.
- Invesco Galaxy Bitcoin ETF (BTCO) had net outflows of $20.5 million. BTCO last reported net outflows on May 1.
- Fidelity Wise Origin Bitcoin Fund (FBTC) saw net outflows of $3.0 million; it last saw net outflows on May 1.
- Excluding flow data for iShares Bitcoin Trust (IBIT) and Valkyrie Bitcoin Fund (BRRR), the US BTC-spot ETF market reported total net outflows of $55.4 million.
It would be a setback for the US Bitcoin spot ETF market if IBIT and BRRR do not post net inflows of more than $55.4 million, ending 18 days of gains. Also, following a downward trend, Ethereum (ETH) ‘s price dropped 1.07% to $3,666 on Monday. Nothing has happened in the US market that could lead to an Ethereum spot ETF.
ProShares Races to Launch US ETH-Spot ETF
In his latest report, Bloomberg Intelligence ETF Analyst James Seyffart stated, “Notably, ProShares passed on BTC-spot ETFs but considered a request for an ETH-spot ETF a viable choice.”. If the 19b-4 is granted on time by the SEC, ProShares may be among those to start trading. The early applications while the companies are still looking for the approval of the S-1 forms.
The US ETH-spot ETF market may attract money if bigger names enter the competition. When it comes to ETF Issuer Revenue, Proshares Advisors LLC was sixth in the ranking by ETF Database. Vanguard was given fourth place, right after the market leaders BlackRock (BLK), State Street (STT), and Invesco (IVZ).
Technical Analysis
Bitcoin Analysis
Bullish price indications were strengthened when the BTC-Spot ETF Demand held firm above the 50-day and 200-day exponential moving averages. The move to $70,000 in BTC would thus be the prelude to the $71,992 level seen on Friday, June 7. If the price goes above $71,992, the record-high price of $73,808 could be touched.
It would be advisable for you to ponder the US political happenings, economic numbers, and data on how the Bitcoin spot ETF is being traded on the market. If the price of Bitcoin breaks the $69,000 support level, the bears might possibly bring the 50-day EMA into play. At its 14-day RSI level of 55.77, Bitcoin can retest its all-time high of $73,808 before going into the overbought region.
Ethereum Analysis
Positive ETH price action stood above the 50-day and 200-day exponential moving averages. If the price continues above $3,750, bulls can attempt the $3,835 zone. The $4,000 limit will become valid only in this case; no excessive resistance level was formed near the $3,835 mark. Investors beware—some new developments have been concerning the US ETH-spot ETF.
In some cases, the 50-day exponential moving average and the $3,480 support level can be the objectives instead. The bears of the say ETH dumps under the $3,600 mark. Ethereum (ETH) may depict a potential spike to $4,000, which could lead to an overbought condition that informationally matches the 14-period Daily RSI reading of 52.52.
Also Read: Analyst Uses Supply-and-Demand Theory to Price Bitcoin
FAQS
What recent changes were observed in the US BTC-spot ETF market?
The BTC-spot ETF market in the U.S. experienced its first outflows since May 10, with total net outflows reaching $55.4 million. Significant outflows were seen from Grayscale Bitcoin Trust (GBTC), Invesco Galaxy Bitcoin ETF (BTCO), and Fidelity Wise Origin Bitcoin Fund (FBTC), signaling a shift in investor sentiment.
How is Ethereum’s price expected to perform in light of the US ETH-spot ETF developments?
Ethereum has shown positive price action, remaining above its 50-day and 200-day EMAs. If ETH surpasses the $3,750 level, it may reach $3,835, and potentially $4,000 if momentum holds. However, recent US ETH-spot ETF developments could influence investor decisions and market sentiment.
What impact could the Federal Reserve's actions have on Bitcoin and other cryptocurrencies?
The Fed’s interest rate decision and economic outlook updates create uncertainty in the market, affecting demand for Bitcoin. If the Fed announces a rate hike, it may discourage buyer activity and lead to increased volatility in Bitcoin and other cryptocurrencies.
What are key technical indicators for Bitcoin's potential price movements?
Bitcoin’s price could rise towards $73,808 if it surpasses resistance levels at $70,000 and $71,992. However, if Bitcoin falls below the $69,000 support, it may encounter bearish pressure. The 50-day EMA and a 14-day RSI level of 55.77 are critical indicators for tracking potential price shifts
