Bitcoin (BTC) News Today: US BTC-Spot ETF Market Sees Six-Day Outflow Streak

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US Services PMI Sends BTC Tumbling Below $64,000

On Friday, June 21, bitcoin (BTC) fell by 1.08%. After a 0.25% loss on Thursday, June 20, BTC ended the session at $64,163. Significantly, BTC extended its losing streak to five sessions, its longest losing streak since October 2023 and the launch of US BTC-spot ETFs.

The US S&P Global Services PMI sent BTC to a Friday low of $63,403. According to the June survey, the Services PMI increased from 54.8 to a 26-month high of 55.1. Economists expected the Services PMI to fall to 53.7.

The hotter-than-expected numbers impacted buyer demand for riskier assets. However, the devil was in the details. While firms increased payrolls, input price inflation softened, and selling price inflation signaled a return of prices to the 2% Fed target.

BTC retook the $64,000 level. Nevertheless, the upswing in hiring could support wage growth and consumer spending. Rising consumer spending trends could fuel demand-driven inflation, potentially keeping interest rates higher for longer.

The effect of the Services PMI on Fed rate cut expectations was relatively modest. According to the CME FedWatch Tool, the probability of the Fed holding interest rates steady in September fell from 35.0% to 34.1% on Friday.

Next week, the crucial Personal Income and Outlays Report will impact sentiment toward the Fed rate path more. Softer US inflation numbers and a pullback in personal income/spending could cement a September Fed rate cut and induce a BTC breakout.

Lingering uncertainty about the Fed rate path affected buyer demand for US BTC-spot ETFs, adding pressure to buyer appetite for BTC.

Will US BTC-Spot ETFs See an End to the Outflow Streak?

On Friday, the US BTC-spot ETF market faced the prospects of a six-day outflow streak.

According to Farside Investors,

  • Grayscale Bitcoin Trust (GBTC) saw net outflows of $34.2 million, down from $53.1 million on Thursday, June 20.
  • Fidelity Wise Origin Bitcoin Fund (FBTC) reported net outflows of $44.8 million.
  • ARK 21Shares Bitcoin ETF (ARKB) had net outflows of $28.8 million.
  • Excluding flow data for iShares Bitcoin Trust (IBIT), the US BTC-spot ETF market saw total net outflows of $105.9 million, compared with outflows of $139.9 million on Thursday.

The US BTC-spot ETF market extended its net outflow streak to six sessions, marking its longest losing streak since May.

Furthermore, the US BTC-spot ETF market logged another day of outflows, with BTC in the red despite another MicroStrategy (MSTR) purchase.

MicroStrategy Purchase Limits the Damage

On Thursday, June 20, MicroStrategy founder and Chairman Michael Saylor announced the purchase of $11,931 BTC on X (formerly Twitter), posting,

“MicroStrategy has acquired an additional 11,931 BTC for ~$786.0M using proceeds from convertible notes & excess cash for ~$65,883 per #bitcoin. As of 6/20/24, $MSTR hodls 226,331 $BTC acquired for ~$8.33B at average price of $36,798 per bitcoin.“

The announcement came after MicroStrategy completed its $800 million offering of 2.25% convertible senior notes.

Although news about the US BTC-spot ETF market and the latest MicroStrategy acquisition drew interest, the focus shifted to US ETH-spot ETF issuers.

US ETH-Spot ETF Issuers File S-1 Amendments

On Friday, the remaining US ETH-spot ETF issuers filed their S-1 amendments.

BlackRock (BLK) was the last issuer to submit its S-1 amendment, paving the way for a US ETH-spot ETF market in July or sooner.

Bloomberg Intelligence Senior ETF Analyst Eric Balchunas shared the news of the BlackRock filing, saying,

“BlackRock is in.. no fee posted but they did report seeding with $10m (altho I think that may have been known already in prev filing). Anyway that’s basically a wrap. Ball in SEC’s court now.”

BlackRock was not the only issuer to withhold its fee details. Only Franklin (0.19%) and VanEck (0.20%) disclosed their fees.

Bitwise, Fidelity, 21Shares, Grayscale, Franklin, VanEck, iShares, and Invesco await final approvals from the SEC. Issuers could launch their respective ETFs the day after receiving final approval.

The Bloomberg Intelligence ETF team expected ETH-spot ETFs to launch before the July 4 holidays.

Will the US ETH-spot ETF see similar demand to the US BTC-spot ETF market?

Eric Balchunas took a more bearish view, saying,

“I do still think eth will be lucky to get 20% of the aum btc etfs have. We’ll see tho..”

Similar demand to BTC-spot ETFs could see ETH break the $5,000 barrier.

Technical Analysis

Bitcoin Analysis

BTC remained below the 50-day EMA but sat above the 200-day EMA, affirming the bearish near-term trends but bullish longer-term signals.

A BTC move through the 50-day EMA could bring the $69,000 resistance level into play. A break above the $69,000 resistance level could give the bulls a run at the $73,808 all-time high.

US BTC-spot ETF market chatter and Fed rate cut expectations could influence buyer demand for BTC.

On the other hand, a BTC drop below the $64,000 support level could give the bears a run at the $60,365 support level.

With a 35.34 14-Daily RSI reading, BTC could drop below the $63,000 level before entering oversold territory.

BTCUSD Daily Chart 220624

Ethereum Analysis

ETH sat below the 50-day EMA while holding above the 200-day EMA. The EMAs sent bearish near-term but bullish longer-term price signals.

A breakout from the 50-day EMA could signal a return to $3,600. An ETH move through the $3,600 handle could give the bulls a run at the $3,835 resistance level.

US ETH-spot ETF-related chatter needs consideration.

Conversely, an ETH break below the $3,480 support level could signal a drop to the $3,244 support level.

The 14-period Daily RSI reading, 45.77, indicates an ETH drop to the $3,244 support level before entering oversold territory.

ETHUSD Daily Chart 220624

This article was originally posted on FX Empire

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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