Bitcoin's fall began shortly after the US released data on its economy. On the 7th, a Friday, the US Bureau of Labor Statistics (BLS) pointed to a growth in the number of jobs in the US, a clear sign that the economy remains strong despite high interest rates.
USA flag, Bitcoin coins and dollar bills.
Bitcoin reached $72,000 earlier this month after ETFs posted one of their best performances of the year. However, now these same ETFs are putting pressure on the digital currency, which has lost 11% of its value in the last 11 days.
This is because outflows reach R$4.8 billion (US$878.9 million) from June 10th until this Wednesday (19th).
The worst performance is for Fidelity's FBTC, the 3rd largest on the market, with outflows of R$2 billion (US$372 million) in the period. Next comes Grayscale's GBTC, with another R$1.8 billion (US$339 million) in the red.
American ETFs put pressure on Bitcoin with outflows of R$4.7 billion. Source: Farside.
The only one that registered a positive flow was BlackRock's IBIT. Even so, the sum is only R$226 million (US$41.6 million), far from having any impact on the market.
🔔 Join our Telegram group and stay updated.
Trigger may have been data from the American economy
Bitcoin's fall began shortly after the US released data on its economy. On the 7th, a Friday, the US Bureau of Labor Statistics (BLS) pointed to growth in the number of jobs in the US, a clear sign that the economy remains strong despite high interest rates.
The following week, the BLS revealed that May inflation was at zero, but still far from the Fed's 2% annual target. On the same day, Jerome Powell revealed that this target can only be reached in 2026.
Fed inflation forecast. Source: Fed.
In another graph, the American Central Bank noted that the interest rate reduction will be gradual and quite slow. Following the previous graph, the Fed estimates that interest rates will only reach 3% in 2026. They are currently between 5.25% and 5.5%.
Interest rate cuts will be a slow path. Source: Fed.
Therefore, this information may have scared Wall Street, causing giants to sell their bitcoins in recent weeks. At the time of writing, Bitcoin is priced at US$65,000.
As the charts do not show any major support in the region, analysts believe that BTC could fall towards $60,000 soon.
Bitcoin falling in June. Source: TradingView.
Ethereum ETFs set to launch in early July, experts say
Another news linked to Wall Street is the Ethereum ETFs, approved by the SEC last month. According to Eric Balchunas, Bloomberg's expert on ETFs, they should be approved in early July.
“We are bringing forward our target date for the launch of the Ether ETF to July 2nd.”
“I heard that staff today sent comments to issuers on the S-1 forms […] asking them to respond within a week,” Balchunas wrote. “There’s a good chance they’ll work to declare them effective next week and get it off the agenda before the long weekend.”
UPDATE: we are moving up our over/under date for the launch of spot Ether ETF to July 2nd, hearing the Staff sent issuers comments on S-1s today, and they're pretty light, nothing major, asking for them back in a week. Decent chance they work to declare them effective the next… https://t.co/XJZ8JLwEFF
— Eric Balchunas (@EricBalchunas) June 14, 2024
While this could be positive for the market, it is possible that institutional investors will move some of their bitcoins to ethereum. Therefore, they can continue to put pressure on BTC.
Finally, it is worth remembering that Grayscale has billions in ETH in its fund that will be converted to ETF. Therefore, it is possible that ETHE could pressure ETH just like GBTC did with BTC.
🔔 If you liked our content and news, send a tip to support our channel and follow us for more information! @Alex Guimarães - Crypto Use
