BTC Extends Winning Streak to Five Sessions on BTC-Spot ETF Market Flow Data
On Wednesday, BTC surged 9.38%. Following a 4.74% rally on Tuesday, BTC ended the session at $62,393. Significantly, BTC held onto the $62,000 handle for the first time since November 2021.
BTC-spot ETF market net inflows for February 27 (Tuesday) sent BTC to a Wednesday session high of $64,008. The BTC-spot ETF market saw total net inflows of $576.9 million on February 27, up from $519.8 million on February 26 (Monday).
iShares Bitcoin Trust (IBIT) saw net inflows surge from $111.8 million on February 26 to $520.2 million on February 27. Significantly, IBIT retook the number one spot for net inflows, with the highest inflows since launch. Fidelity Wise Origin Bitcoin Fund (FBTC) saw net inflows fall from $243.3 million to $126.0 million on February 27.
A spike in Grayscale Bitcoin Trust (GBTC) net outflows failed to spook investors. GBTC saw net outflows of $125.6 million, up from $22.4 million on February 26.
Based on the current run rate, the BTC-spot ETF market could see weekly net inflows surpass the $2,271 million recorded in the week ending February 16.
BitMEX BTC-spot ETF Market Flows for 27/02.24
Trading volumes surged on Tuesday, reflecting the bullish mood. Bloomberg Intelligence Senior ETF Analyst Eric Balchunas shared volume data for February 27, saying,
“RIDIC: the New Nine doubled their volume record (set Monday) with just about $6b traded.. IBIT led w $3.3b of it. Fidelity did $1.4b (both double their prev records). The total number of trades was double too, over half a million individual trades bt them. $IBIT alone > $QQQ.”
However, initial BTC-spot ETF market flow data for February 28 signaled a possible pullback in total net inflows, testing buyer demand for BTC.
BTC-Spot ETF Market Flow Numbers for February 28
According to Farside Investors, GBTC saw net outflows of $216.4 million on February 28. However, FBTC saw net inflows jump from $126.0 million (February 27) to $245.2 million (February 28). Another $500 plus million in IBIT net inflows may fuel another BTC breakout session on Thursday.
Excluding IBIT, BTCO, and HODL, the BTC-spot ETF market saw net inflows of $64.7 million on February 28.
Farside Investors BTC-spot ETF Flows for 28/02/24
BTC and the BTC-Spot ETF Market Ignore US Inflation Jitters
The rebound in BTC-spot ETF market inflows came despite investor jitters about US inflation numbers out on Thursday. Hotter-than-expected inflation numbers could slash bets on an H1 2024 Fed rate cut. The US equity markets reflected investor caution before the inflation numbers.
On Wednesday, the Nasdaq Composite Index fell by 0.55%. The Dow and S&P 500 ended the session down 0.06% and 0.17%, respectively.
Economists forecast the US Core PCE Price Index to increase by 2.8% year-on-year in January. In December, the Core PCE Price Index rose by 2.9%.
While BTC tends to react to US inflation reports and bets on Fed rate cuts, BTC-spot ETF market flows could have more impact.
Technical Analysis
Bitcoin Analysis
BTC sat well above the 50-day and 200-day EMAs, affirming the bullish price signals.
A BTC breakout from the Wednesday high of $64,008 would give the bulls a run at the all-time high of $69,276.
US inflation figures and BTC-spot ETF market flow data need consideration.
However, a break below the $59,176 support level could signal a drop to the $57,000 support level.
The 14-Daily RSI reading, 82.05, shows BTC in overbought territory. Selling pressure may intensify at the Wednesday high of $64,008.
BTCUSD 290224 Daily Chart
Ethereum Analysis
ETH remained well above the 50-day and 200-day EMAs, affirming the bullish price signals.
An ETH breakout from the $3,412 resistance level and the Wednesday high of $3,496 would support a move toward the $3,683 resistance level.
ETH-spot ETF-related news needs consideration.
However, an ETH drop below the $3,350 handle would bring the $3,200 support level into play.
The 14-period Daily RSI at 85.05 shows ETH in overbought territory. Selling pressure may intensify at the Wednesday high of $3,496.
ETHUSD 290224 Daily Chart
This article was originally posted on FX Empire
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