Spot Bitcoin ETFs continued their streak of inflows with over $21 million recorded on Wednesday. This comes ahead of key macroeconomic data releases, including the U.S. GDP growth rate and the Federal Reserve's PCE inflation data. On Wednesday, June 26, Bitcoin ETF flows were positive, totaling over $21 million. Fidelity led this influx, while BlackRock remained stagnant. Additionally, Grayscale’s GBTC drew attention with positive flows after a recent outflow streak. These inflows come at a crucial time for Bitcoin (BTC) and the broader crypto market as the U.S. GDP growth data is set to release on Thursday, June 27.
Latest Bitcoin ETF Inflow Data
The Fidelity FBTC ETF recorded $18.6 million in new investments. Meanwhile, Grayscale’s GBTC, after a streak of significant outflows, saw an unexpected inflow of $4.3 million. However, the BlackRock Bitcoin ETF (IBIT) remained stable with zero flows.
Other ETFs mirrored this trend. Bitwise’s BITB, Invesco Galaxy’s BTCO, Franklin Templeton’s EZBC, and Valkyrie’s BRRR ETF all recorded zero flows. Conversely, VanEck’s HODL registered $3.4 million in inflows.
In contrast, Ark experienced the only outflows, amounting to $4.9 million. On Tuesday, the 10 Bitcoin ETFs witnessed a net inflow of $31 million, reversing the outflow trend from the previous week. This recent influx indicates a resurgence of investor interest in these funds.
Meanwhile, Bitcoin’s price has been fluctuating between $61,000 and $62,000, a narrow range indicative of market indecision. The upcoming release of U.S. GDP growth rate data could potentially influence the market.
Additionally, Friday, June 28, marks an important date with quarterly futures and options settlements taking place. These events are historically known for their market volatility. Investors are also bracing for the Federal Reserve’s preferred inflation data, the Personal Consumption Expenditures (PCE) index, which coincides with a significant $6.72 billion options expiry.
The max pain point for these Bitcoin options is $57,000, raising concerns of a potential price drop. More than 104,000 options will expire on Friday with a Put Call Ratio of 0.52. While most bettors are bullish on Bitcoin, the max pain point suggests otherwise.
Government BTC Selloffs
Amid this market volatility, the German government has been liquidating its Bitcoin holdings, transferring another 595 BTC to major cryptocurrency exchanges. This action is part of a larger sell-off strategy, with over 2,000 BTC sold from the German government-associated address in recent days. The persistent nature of these sales suggests that the German authorities may not have concluded their liquidation efforts.
Following Germany’s lead, the U.S. government moved a substantial 4,000 BTC worth $241 million to Coinbase Prime on June 26. This transfer exerted downward pressure on Bitcoin’s price, causing a 1.5% drop to just below $61,000.
Despite these sales, CryptoQuant CEO Ki Young Ju emphasized that such governmental sell-offs are not the primary drivers of the price dip. According to Ju, Coinbase Prime can handle substantial liquidity, managing between 20,000 and 49,000 BTC during periods of high Spot Bitcoin ETF inflows, and maintaining between 6,000 to 15,000 BTC during lower inflow periods.
What’s Next for BTC Price?
Bitcoin’s current price hovers just above the critical $60,000 support level, which has been tested over five times since March 2024. Additionally, Bitcoin is trading below the 50-day simple moving average (SMA) but above the 200-day SMA, signaling a tug-of-war between bullish and bearish sentiments.
Currently, the Relative Strength Index (RSI) for Bitcoin stands at 33, slightly above the oversold threshold of 30, which analysts believe could drive a recovery. However, the BTC price trading below its moving average suggests potential further downside.
Bitcoin’s price has been consolidating within a broad range, with an upper boundary at $73,500 and a lower boundary at $60,000, over the past four months. For bulls to regain control, they need to push the price above $65,000, which may face resistance around $72,000.
On the other hand, a break below $60,000 could trigger panic selling, potentially driving the price down to the $50,000 to $52,000 support zone. Additionally, the release of U.S. GDP growth rate data is a significant event that could sway market sentiment.
Strong GDP growth typically indicates a robust economy, which can boost investor confidence in riskier assets like Bitcoin. Conversely, weak GDP growth might fuel economic uncertainty, leading investors to seek safer havens like gold, potentially causing Bitcoin's price to drop.
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