Bitcoin News Today: Tuesday’s ETF Insights Influence Crypto Market Sentiment

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BTC-Spot ETF-Related News Contribute to Tuesday Gains

On Tuesday, BTC gained 0.93%. Reversing a 0.70% decline from Monday, BTC ended the session at $52,293.

Early BTC-spot ETF market numbers for February 20 signaled a possible sharp decline in net inflows after the Monday holiday.

There were net outflows of $18.7 million on Tuesday, February 20, excluding iShares Bitcoin Trust (IBIT) numbers. Fidelity Wise Origin Fund (FBTC) saw net inflows fall from $116.7 million to $71.7 million. ARK 21Shares Bitcoin ETF (ARKB) saw net inflows slide from $140.0 million to $27.4 million.

Grayscale Bitcoin Fund (GBTC) recorded net outflows of $137.0 million, down from $150.4 million on Friday.

BTC-Spot ETF Flows 200224

Despite the downtrend in net inflows, VanEck Bitcoin Trust (HODL) garnered investor interest on Tuesday.

VanEck Bitcoin Trust Trading Volumes Spike

Bloomberg Intelligence Senior ETF Analyst shared a chart showing a surge in trading volume, saying,

“HODL is going wild today with $258m in volume already, a 14x jump over its daily average, and it’s not one big investor (which would make sense) but rather 32,000 individual trades, which is 60x its avg. Not sure how to explain.. maybe it was added to a platform over wknd ?”

HODL Volumes Surged on Feb 20 2024

Later in the session, Balchunas added,

“Still haven’t figured out what happened. No one knows. Given how sudden and explosive the increase in number of trades was (500 trades Friday, 50,000 trades today) I’m wondering if some Reddit or TikTok influencer type recommended them to their followers. Feels retail army-ish.”

However, news of advisor Degen retail entering the BTC-spot ETF space was BTC price-positive.

Balchunas wrapped up the Tuesday session, saying,

“IBIT has had 26 straight days of inflows (and these are big boy inflows too), would think we’d see at least some outflows if it was SPY-like trading vehicle. No argument tho re overall point that ETFs are def trading vehicles (more like 22% of eq volume tho not 40%) but I disagree in this case, I think we seeing long-term allocations (as well as some trading). These issuers are heavily connected w advisor world. Advisors love and trust ETFs. Degen retail already has access if they wanted it.”

ETH-Spot ETF-Related News Sends ETH to $3,000

ETH stole the Tuesday show, rallying 2.38% to end the day at $3,014. Market expectations of the SEC approving the first batch of ETH-spot ETF applications by May continued to drive buyer demand.

Last week, Fox Business Journalist Eleanor Terrett shared the odds of the SEC approving ETH-spot ETFs. Significantly, crypto experts put the odds at 50/50 for the SEC to approve ETH-spot ETFs by May.

The odds are lower than the odds ETF Analysts Seyffart and Balchunas gave for the SEC to approve the first batch of BTC-spot ETFs. ETH remains at risk of a sharp reversal should the SEC delay its decision to approve ETH-spot ETFs in May.

Technical Analysis

Bitcoin Analysis

BTC remained well above the 50-day and 200-day EMAs, affirming bullish price signals.

A BTC break above the Tuesday high of $53,019 would bring the $55,000 handle into play.

BTC-spot ETF market-related flows need consideration.

However, a drop below the $51,500 handle would give the bears a run at the $50,500 support level.

The 14-Daily RSI reading, 75.66, shows BTC in overbought territory. Selling pressure could intensify at the Tuesday high of $53,019 handle.

BTCUSD 210224 Daily Chart

Ethereum Analysis

ETH sat well above the 50-day and 200-day EMAs, sending bullish price signals.

An ETH break above the Tuesday high of $3,032 would bring the $3,100 handle into play.

ETH-spot ETF-related activity needs investor consideration.

However, an ETH drop below the $2,950 handle would support a fall toward the $2,800 handle.

The 14-period Daily RSI at 80.11 shows ETH in overbought territory. Selling pressure could intensify at the Tuesday high of $3,032.

ETHUSD 210224 Daily Chart

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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