Crucial Points:
- Bitcoin (BTC) rose 2.52% on Tuesday, June 25, finishing at $61,848.
- The US BTC-spot ETF market aimed to halt a seven-day outflow run.
- On Wednesday, June 26, SEC actions, FOMC member speeches, and US BTC-spot ETF market flow trends should be considered.
Bitcoin Responds to US Economic Data and Fed Rate Reduction Hypotheses
Bitcoin (BTC) saw a gain of 2.52% on Tuesday, June 25. After a 4.48% decline on Monday, Bitcoin closed the session at $61,848.
The Fed’s interest rate cut in September was supported by US consumer confidence data, which caused investors to react to the US economic calendar.
The CB Consumer Confidence Index dropped from 101.3 to 100.4 in June. Weak consumer confidence may indicate a reduction in consumer expenditure, dampening demand-driven inflationary pressures. Significantly, BTC soared to a session high of $62,459 in response to the data before falling below the $62,000 mark.
BTCUSD Hourly Chart 260624
Investors may have to wait until Friday to get a better sense of the Fed’s interest rate stance, even though consumer confidence data remains weak. According to the FedWatch tool, the probability of the Fed keeping interest rates steady in September rose to 33.3% from 31.5% on Tuesday. The probability of the Fed keeping rates steady was 33.0% a week ago.
Could market predictions of a September Fed rate decrease increase demand for US Bitcoin-spot ETFs?
The US inflation data released on Friday could have a significant impact on near-term Bitcoin price movements.
The US spot-ETF market breaks out of its seven-day outflow streak
The US economic data brought relief to the US BTC-Spot ETF market. Investments in the US BTC-Spot ETF market boosted BTC’s gains during the Wednesday morning session.
Based on a report from Farside Investors:
Grayscale Bitcoin Trust (GBTC) had net outflows of $30.3 million on Tuesday, a decrease from $90.4 million on Monday.
Fidelity Wise Origin Bitcoin Fund (FBTC) reported net inflows of $48.8 million after seeing net outflows of $35.2 million on Monday.
The Bitwise Bitcoin ETF (BITB) recorded net inflows of $15.2 million, reversing withdrawals of $8.2 million on Monday.
The U.S. BTC-spot ETF market saw total net inflows of $31.0 million on Tuesday, while net outflows of $174.5 million were seen on Monday, excluding flow data from the iShares Bitcoin Trust (IBIT).
Notably, the U.S. BTC-Spot ETF market broke a seven-day streak of outflows, opening Wednesday’s session on a positive note.
