ETFs
Bitcoin (BTC) News Today: Will US BTC-Spot ETFs Counter the Mt. Gox Effect?
Growing investor bets on a September Fed rate cut have fueled buyer demand for U.S. spot BTC ETFs.
US jobs report and Fed rate cut bets boost demand
Friday, the US Employment Report Investors are betting on a Fed rate cut in September. Weaker wage growth and a higher unemployment rate suggest the Fed may need to start thinking about labor market conditions. A deterioration in the U.S. labor market could revive investor fears of a U.S. hard landing.
Parker Ross, global chief economist at Arch Capital Group, reacted to the US jobs report: declarant:
“It now appears increasingly likely that we are approaching an inflection point for the labor market and the Fed should step up and take notice.”
To put things into context, the U.S. unemployment rate rose for the third consecutive month, reaching 4.1%, the highest level since November 2021.
However, avoiding a hard landing and a more accommodative red path could boost buyer demand for US spot BTC ETFs and counter the Mt. Gox effect.
BTC-spot ETF investors may view Mt. Gox’s anticipated supply as a buying opportunity. An increase in BTC supply could provide BTC-spot ETF buyers with an attractive entry price into a Fed easing cycle.
However, the economic outlook ahead could prove challenging, with the US CPI report and testimony from Fed Chair Powell in focus.
Fed Chairman Powell may sound optimistic about a Fed rate cut when he testifies on Capitol Hill (Tuesday/Wednesday).
However, a warmer-than-expected US CPI report (Thursday) could dampen investor bets on a September Fed rate cut and buyer demand for BTC.
Economists expect the core inflation rate in the United States to remain at 3.4% in June, well above the 2% target.
In conclusion, the US economic calendar could influence buyer demand for US spot BTC ETFs. Rising bets on a Fed rate cut in September could counteract an increase in supply due to Mt. Gox repayments to creditors.
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Technical analysis
Bitcoin Analysis
Bitcoin was below 50 days and 200 days EMAconfirming downward price trends.
A BTC break above the 200-day EMA would favor a move towards the $60,365 resistance level. A break of the $60,365 resistance level could give the bulls a chance at the 50-day EMA and the $64,000 resistance level. However, selling pressure could intensify at the $64,000 resistance level. The 50-day EMA is confluent with the resistance level.
The trajectory of Fed rates, its influences on the US BTC-spot ETF market and supply trends must be taken into account.
On the other hand, a drop below the $55,000 level could signal a decline towards the $52,884 support level.
With a daily RSI reading of 34.31, BTC could fall as far as the $55,000 mark before entering oversold territory.