Bitcoin (BTC) News Today: US BTC-Spot ETF Market Sees Inflows Despite Fed Hawks

Hawkish Fed Commentary Tempers Investor Bets on a Fed Rate Cut

On Thursday (May 16), Bitcoin (BTC) declined by 1.47%. Partially reversing a 7.44% rally from Wednesday (May 15), BTC ended the session at $65,198.

US inflation and retail sales figures from Wednesday (May 15) fueled investor bets on a September Fed rate cut. Hopes of a Fed rate cut drove buyer demand for riskier assets.

However, FOMC member commentary on Thursday (May 16) tempered investor expectations of a September Fed rate cut. FOMC members Loretta Mester and Raphael Bostic suggested a higher-for-longer rate path, impacting market risk sentiment.

The Nasdaq Composite Index declined by 0.26% on Thursday (May 16).

Nevertheless, the chances of a September Fed rate cut remain positive. According to the CME FedWatch Tool, the probability of the Fed cutting interest rates in September stood at 68.4% on Thursday (May 16), down from 68.7% on Thursday (May 9).

Fed Rate Cut Bets and the US BTC-Spot ETF Market

US BTC-spot ETF flow data continued to reflect investor bets on a Fed rate cut. According to Farside Investors, the US BTC-spot ETF market saw total net inflows of $303.0 million on Wednesday (May 15).

Flow data for Thursday (May 16) were also positive, with the US BTC-spot ETF market eying four successive days of net inflows. The US BTC-spot ETF market last enjoyed four consecutive days of net inflows in the first week of April.

According to Farside Investors,

• Grayscale Bitcoin Trust (GBTC) saw net inflows of $4.6 million, down from $27.0 million on Wednesday (May 15).
• Fidelity Wise Origin Bitcoin Fund (FBTC) had net inflows of $67.1 million, down from $131.3 million on Wednesday.
• ARK 21Shares Bitcoin ETF (ARKB) saw net inflows of $62.0 million, up from $38.6 million on Wednesday.
• Excluding flow data for iShares Bitcoin Trust (IBIT) and Valkyrie Bitcoin Fund (BRRR), the US BTC-spot ETF market saw total net inflows of $145.1 million.

While the US BTC-spot ETF market flow data are price-positive for BTC, investors should continue monitoring FOMC member speeches. FOMC member Christopher Waller is on the calendar to speak on Friday.

Technical Analysis

Bitcoin Analysis

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

A BTC break above the $67,500 handle could give the bulls a run at the $69,000 resistance level. A BTC breakout from the $69,000 resistance level could bring the $73,808 all-time high into play.

US BTC-spot ETF market flow data and FOMC Member chatter need consideration.

Conversely, a BTC drop through the $64,000 support level and the 50-day EMA could signal a fall toward the $60,365 support level.

With a 55.23 14-Daily RSI reading, BTC could break above the $69,000 resistance level before entering overbought territory.

Ethereum Analysis

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

An ETH break above the $3,033 resistance level would bring the 50-day EMA into play. A breakout from the 50-day EMA would support a move toward the $3,244 resistance level.

Conversely, an ETH break below the 200-day EMA could give the bears a run at the $2,664 support level.

The 14-period Daily RSI reading of 43.79 suggests an ETH drop to the $2,664 support level before entering oversold territory.