First Mover Americas: Bitcoin Stabilizes Amid Further ETF Outflows

This article originally appeared in First Mover, CoinDesk’s daily newsletter, putting the latest moves in crypto markets in context. Subscribe to get it in your inbox every day.

(CoinDesk)

Bitcoin has stabilized following its plunge below $67,000 on Tuesday, with traders awaiting the latest key macroeconomic reports from the U.S. BTC nudged upward toward $68,000 during the late European morning, an increase of 1.3% in the last 24 hours. Ether meanwhile rose around 0.2% to sit just under $3,550. The CoinDesk 20 Index (CD20), which measures the broader digital asset market, is about 0.25% higher in the last 24 hours. Attention will be on the CPI data, due today, from the U.S. and the outcome of the Federal Open Market Committee (FOMC) meeting, which will indicate the Fed’s monetary policy.

Bitcoin ETFs recorded a second straight day of outflows on Tuesday, with $200 million exiting the 11 spot products in the U.S., the highest since May 1. Grayscale’s GBTC, as it often is, was the worst affected, with outflows of $120 million. ARK 21Shares’ ARKB, Bitwise’s BITB and VanEck’s HODL’s outflows ranged from $57 million to $7 million. “Markets are [in] risk-off mode ahead of CPI and FOMC tomorrow. This month’s FOMC will also release the Dot Plot, which informs the market how many cuts the Fed anticipates for the rest of 2024,” Singapore-based QCP Capital said in a Tuesday broadcast message. However, the firm added that its long-term view is bullish “despite short-term headwinds.”

Donald Trump said he wants all remaining bitcoin to be “made in the U.S.A.,” having met with executives from mining companies CleanSpark and Riot. The Republican presidential candidate referred to bitcoin mining as the U.S.’ “last line of defense against a CBDC,” adding that President Biden’s “hatred of bitcoin” is beneficial to China and Russia. “We want all the remaining Bitcoin to be MADE IN THE USA!!! It will help us be ENERGY DOMINANT,” Trump wrote in a post on the social media platform Truth Social late on Tuesday. Data suggests that more bitcoin is already mined in the U.S. than any other country, with 37.84% of the network’s total hash power. Trump’s post indicates he wants this figure to be much higher.

(TradingView)

The chart shows bitcoin has come under pressure since Friday, decoupling from Nasdaq, which has hit fresh record highs.

Nasdaq might follow bitcoin lower if the impending U.S. CPI for May blows past expectations.

Source – TradingView

– Omkar Godbole

 

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