Key Points:
- Bitcoin (BTC) advanced by 0.99% on Friday, July 12, closing at $57,953.
- US BTC-spot ETF market inflows and German government BTC sales influenced buyer demand for BTC.
- On Saturday, July 13, investor bets on a September Fed rate cut may also affect BTC price trends.
In this article:
- GBTC+0.49%
- FBTC+0.46%
- IBIT+0.49%
- Bitcoin+0.93%
- Ethereum+0.76%
Bitcoin Market Trends
On Friday, July 12, BTC advanced by 0.99%, reversing a 0.76% fall from Thursday, July 11. BTC closed at $57,953.
German Government Offloads Final Bitcoin Holdings
The German government sold its remaining BTC, easing concerns about oversupply. Arkham Intelligence announced the news, stating,
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“The German Government has 0 BTC ($0.00M) remaining.”
German government sales of BTC contributed to a retreat below $55,000 on July 5. However, demand from the US BTC-spot ETF market countered the effects of oversupply. The US BTC-spot ETF market highlighted its significance in periods of market stress.
US BTC-Spot ETF Market Inflow Streak Continues
The US BTC-spot ETF market extended its inflow streak to six sessions on Friday.
According to Farside Investors,
- On Friday, Grayscale Bitcoin Trust (GBTC) saw net inflows of $23.0 million.
- Fidelity Wise Origin Bitcoin Fund (FBTC) had net inflows of $115.1 million.
- Excluding iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market saw $190.1 million in total net inflows. On Thursday, the total net inflows were $78.9 million.
This week, the US BTC-spot ETF market could see its first $1 billion in net inflows since the first week of June. Excluding the flow data for IBIT, total weekly net inflows were $927.6 million.
How Did the Experts React to the Spot ETF Trends?
Bloomberg Intelligence Senior ETF Analyst Eric Balchunas commented on spot bitcoin ETF flow trends, stating,
“In the meantime IBIT et al. continues to gobble up btc like Super Pac-Man. Impressive given price still sub-60k after 20% drop.”
Rising investor bets on a September Fed rate cut boosted demand for BTC.
Fed Rate Cut Bets Fuel BTC Demand
On Friday, headline US producer price figures beat forecasts. However, key sub-components, signaled a possible return of disinflation.
According to the CME FedWatch Tool, the chances of a September Fed rate cut surged from 77.7% on Friday, July 5, to 96.3% on Friday, July 12.
Rising expectations of a September Fed rate cut fueled demand for BTC-spot ETFs, offsetting the German government’s BTC sales.
Despite the easing concerns about supply, investors should remain alert. Monitor real-time data and expert commentary to adjust your trading strategies accordingly. Stay informed with our latest news and analysis to manage crypto market risk.
Technical Analysis
Bitcoin Analysis
BTC remained below the 50-day and 200-day EMAs, confirming the bearish price trends.
A BTC break above the 200-day EMA would support a move to the $60,365 resistance level. Furthermore, a BTC breakout from the $60,365 resistance level could give the bulls a run at the 50-day EMA.
On Saturday, investor sentiment toward the Fed rate path and demand trends for US BTC-spot ETFs require consideration.
On the other hand, a drop below $55,000 could give the bears a run at the $52,884 support level.
With a 39.52 14-Daily RSI reading, BTC could drop below the $55,000 handle before entering oversold territory.
Ethereum Analysis
ETH hovered above the 200-day EMA while remaining below the 50-day EMA. The EMAs sent bearish near-term but bullish longer-term price signals.
A move above the $3,244 resistance level could give the bulls a run at the 50-day EMA. Furthermore, an ETH breakout from the 50-day EMA could signal a move toward the $3,480 resistance level.
US ETH-spot ETF market-related updates also require consideration.
Conversely, an ETH drop below the 200-day EMA and $3,033 support level could bring the $2,800 handle into play.
The 14-period Daily RSI reading, 41.24, indicates an ETH drop to $2,800 before entering oversold territory.
Source:- FXEMPIRE
