US BTC-Spot ETFs Influence BTC Price Trends
The influence of US BTC-spot ETFs on BTC price trends has been a hot topic in the cryptocurrency market. On Wednesday, as a tech sector rout overshadowed rising Fed support for an interest rate cut, the Nasdaq Composite Index tumbled 2.77%. This sell-off was attributed to concerns about tighter US export controls on chipmaking-related equipment for China, leading to risk aversion among investors.
In the midst of this market turmoil, the demand for US BTC-spot ETFs was impacted. According to Farside Investors, Grayscale Bitcoin Trust (GBTC) saw net outflows of $53.9 million, while Fidelity Wise Origin Bitcoin Fund (FBTC) had net inflows of $2.8 million. Bitwise Bitcoin ETF (BITB) reported net outflows of $6.0 million, and 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 potentially end an eight-day inflow streak if IBIT has modest inflows. The possibility of 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 have a negative impact on BTC price trends.
As investors await US labor market data on Thursday, July 18, economists are forecasting an increase in Continuing Jobless Claims. Weaker labor market conditions could fuel speculation of multiple 2024 Fed rate cuts, potentially reducing borrowing costs and driving demand for riskier assets. However, investors must also consider supply and demand trends alongside the US data, as an oversupply could overshadow bets on Fed rate cuts.
In terms of technical analysis, BTC is currently above the 50-day and 200-day EMAs, signaling bullish price movements. A return to $67,500 could indicate a move towards the $69,000 resistance level, with a potential break above leading to a run at the March 2024 all-time high of $73,808. However, a break below the $64,000 support level could signal a drop to the 50-day EMA.
With all these factors in play, investors are advised to stay alert and monitor real-time data and expert commentary to adjust their trading strategies accordingly. Keeping up-to-date with the latest news and analysis will be crucial in managing risk in the volatile crypto market.