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Bitcoin (BTC) News Today: Will US Spot BTC ETFs Counter the Mt. Gox Effect?
Growing investor bets on a Fed rate cut in September have fueled buyer demand for U.S. spot BTC ETFs.
US jobs report, Fed rate cut bets boost demand
Friday, the US Employment Report fueled investor bets that the Fed will cut rates in September. Weaker wage growth and higher unemployment have suggested that the Fed may need to start looking at labor market conditions. A deteriorating U.S. labor market could reignite investor fears of a hard landing in the U.S.
Parker Ross, global chief economist at Arch Capital Group, reacted to the U.S. jobs report, stating:
“It looks increasingly likely that we are approaching a turning point in the labor market, and the Fed should pay attention and take note.”
For context, the U.S. unemployment rate rose for the third straight month to 4.1%, the highest level since November 2021.
However, avoiding a hard landing and a more dovish red path could stimulate buyer demand for US spot BTC ETFs and counter the Mt. Gox effect.
BTC spot ETF investors may see the expected Mt. Gox supply as a buying opportunity. A surge in BTC supply could offer buyers of BTC spot ETFs an attractive entry price into a Fed easing cycle.
However, this could be a weak and challenging phase, with the US consumer price index report and testimony from Fed Chair Powell taking center stage.
Federal Reserve Chairman Powell may express optimism about a rate cut during his testimony on Capitol Hill (Tuesday/Wednesday).
However, a warmer-than-expected US CPI report (Thursday) could scupper investors’ bets on a Fed rate cut in September and demand for BTC from buyers.
Economists expect the U.S. core inflation rate to remain at 3.4% in June, well above the 2% target.
Ultimately, the U.S. economic calendar could influence buyer demand for U.S. spot BTC ETFs. Rising bets on a September Fed rate cut could counter a surge in supply from Mt. Gox repayments to creditors.
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Technical Analysis
Bitcoin Analysis
BTC it settled below 50 and 200 days EMAconfirming the bearish trend in prices.
A breakout of BTC above the 200-day EMA will support a move towards the $60,365 resistance level. A breakout from the $60,365 resistance level could give the bulls a run at the 50-day EMA and the $64,000 resistance level. However, the selling pressure could intensify at the $64,000 resistance level. The 50-day EMA is confluent with the resistance level.
The Fed’s rate action, its influence on the US BTC spot ETF market, and supply trends need to be taken into account.
On the other hand, a drop below the $55,000 mark could signal a drop to the support level of $52,884.
With a daily RSI of 34.31, BTC could drop to the $55,000 mark before entering oversold territory.