Bitcoin (BTC) saw a 1.38% increase on Thursday, June 27, closing at $61,691. This rise came in response to US economic indicators and speculations about a possible September Federal Reserve rate cut. Investor sentiment towards BTC was influenced by inflows into the US BTC-spot ETF market as they awaited crucial US inflation data.
US Economic Indicators Fuel BTC Buyer Demand
On Thursday, June 27, Bitcoin (BTC) gained 1.38%, reversing a 1.61% loss from the previous day and ending the session at $61,691. Investor sentiment towards a potential September Fed rate cut remained strong ahead of important US inflation figures due on Friday, June 28.
US economic indicators have supported bets on a September Fed rate cut, boosting demand for riskier assets like Bitcoin. Finalized US GDP numbers showed a slowdown in growth from 3.4% in Q4 2023 to 1.4% in Q1 2024. Additionally, initial jobless claims fell from 239k to 233k for the week ending June 22, but the number of insured unemployed reached the highest level since 2021.
These data points led investors to increase their bets on a September Fed rate cut. The CME FedWatch Tool showed a decrease in the probability of the Fed holding interest rates steady in September, falling from 37.7% to 35.9% on Thursday. Bitcoin responded positively to this, reaching a session high of $62,405 before slightly pulling back below $62,000.
US BTC-Spot ETF Market Trends
The US BTC-spot ETF market has been showing signs of buyer interest. On Wednesday, June 26, total net inflows were $21.4 million, down from $31.0 million on Tuesday, June 25. Despite the dip, the market has reported total net inflows of $581.7 million for June, compared to $2,095.5 million in May.
On Thursday, June 27, the US BTC-spot ETF market aimed to extend its net inflow streak to three sessions. Notable inflows included $8.0 million for the Bitwise Bitcoin ETF (BITB) and $6.7 million for the Fidelity Wise Origin Bitcoin Fund (FBTC). Excluding flow data for the iShares Bitcoin Trust (IBIT), total net inflows for the day were $8.7 million.
Technical Analysis: Bitcoin and Ethereum
Bitcoin Analysis
BTC is currently hovering below the 50-day EMA but remains above the 200-day EMA, indicating bearish near-term signals but bullish long-term signals. A move above the $64,000 resistance level could signal a bullish trend, while a drop below the $60,365 support level could indicate a bearish move towards the 200-day EMA. The 14-Daily RSI reading of 35.02 suggests that BTC might fall through the $60,365 support level before reaching oversold territory.
Ethereum Analysis
ETH is also sitting below its 50-day EMA while holding above the 200-day EMA, confirming bearish near-term but bullish longer-term trends. A breakout above the $3,480 resistance level and the 50-day EMA could support a move towards $3,600. Conversely, a break below the $3,244 support level could lead to a bearish move towards the 200-day EMA and the $3,033 support level. The 14-Daily RSI reading of 44.97 indicates that ETH may break below the $3,244 support level before entering oversold territory.
Conclusion
Bitcoin’s price movement is heavily influenced by US economic indicators and speculations about Fed rate cuts. The recent rise in BTC price and the activity in the US BTC-spot ETF market suggest increased investor interest. With crucial US inflation data on the horizon, BTC’s performance will be closely watched. Both Bitcoin and Ethereum are showing mixed signals, with potential for both upward and downward movements depending on upcoming economic reports and market trends.