Spot Bitcoin ETFs saw over $21 million inflow on Wednesday. This precedes the U.S. GDP growth rate and Federal Reserve PCE inflation data.
On Wednesday, June 26, Bitcoin ETF transactions were positive, with a total of over $21 million.
Fidelity led the influx, while BlackRock stayed stagnant.
Additionally, Grayscale’s GBTC attracted attention with its positive flows following an outflow trend.
These inflows occur at a critical juncture for the crypto market and Bitcoin (BTC), as the U.S. GDP growth data is scheduled to be released on Thursday, June 27.
Latest Bitcoin ETF Inflow Data
The Fidelity FBTC ETF has received $18.6 million in new investments.
Grayscale’s GBTC, on the other hand, experienced an unexpected inflow of $4.3 million following a recent period of substantial outflows.
However, the BlackRock Bitcoin ETF (IBIT) stayed flat, with no inflows.
Bitwise’s BITB, Invesco Galaxy’s BTCO, Franklin Templeton’s EZBC, and Valkyrie’s BRRR ETF, which also recorded zero flows, mirrored the trend.
Furthermore, VanEck’s HODL has received $3.4 million in inflows.
On the other hand, Ark encountered the sole outflows, which totaled $4.9 million.
On Tuesday, the 10 Bitcoin ETFs experienced a net inflow of $31 million, which represents a reversal of the outflow trend noted last week.
Additionally, the recent inflow serves to reinforce the renewed interest of investors in these funds.
Meanwhile, the Bitcoin price has been varying between $61,000 and $62,000, a narrow range that suggests market uncertainty.
Today’s anticipated release of the US GDP growth rate data may potentially impact the market.
Furthermore, Friday, June 28, is a significant date due to the quarterly futures and options settlements.
These events are historically recognized for their volatile market conditions.
Additionally, investors are anticipating the release of the Federal Reserve’s favored inflation data, the Personal Consumption Expenditures (PCE) index, which coincides with a substantial $6.72 billion options expiry.
The max pain point for these Bitcoin options is $57,000, which raises concerns about a potential collapse.
On Friday, a Put Call Ratio of 0.52 will expire, with over 104K options.
While most traders are optimistic about Bitcoin’s price, the max pain point offers a different image.
Government BTC Selloffs
Amid this market volatility, the German government has been liquidating its Bitcoin holdings, transferring another 595 BTC to key cryptocurrency exchanges.
In the past few days, the German government-associated address has sold over 2,000 BTC as part of a wider sell-off strategy.
Moreover, the persistent nature of these sales implies that the German authorities may not have exhausted their liquidation efforts.
On June 26, the U.S. government transferred a massive 4,000 Bitcoin (BTC) worth $241 million to Coinbase Prime, following Germany’s lead.
Additionally, this transfer resulted in a 1.5% dip in Bitcoin’s price, which closed just below $61,000.
However, CryptoQuant CEO Ki Young Ju highlighted that the price drop is not primarily caused by governmental sell-offs, despite these sales.
Ju asserts that Coinbase Prime is capable of managing a significant amount of liquidity, specifically between 20,000 and 49,000 BTC during periods of high Spot Bitcoin ETF inflows.
However, it remains within the range of 6,000 to 15,000 BTC during periods of reduced inflow.
What’s Next For BTC Price?
Bitcoin’s current price is just above the critical $60,000 support level, which has been tested over five times since March 2024.
Moreover, the oldest crypto is currently trading below the 50-day simple moving average (SMA) and above the 200-day SMA, indicating a tug-of-war between bearish and bullish sentiments.
At present, the Relative Strength Index (RSI) for Bitcoin is 33, which is barely above the oversold threshold of 30, which analysts believe could stimulate a recovery.
However, the BTC price currently trading below its moving average, which implies that there is potential for further downturn.
Over the past four months, the Bitcoin price has been settling within a broad range, with an upper boundary of $73,500 and a lower boundary of $60,000.
However, for bulls to regain control, they have to push the price above $65,000, a level that may face resistance at $72,000.
Conversely, a drop below $60,000 could induce panic selling.
It has the potential to lower the price to the support zone of $50,000 to $52,000.
Furthermore, market sentiment may be significantly affected by the release of US GDP growth rate data.
The presence of a robust economy is typically reflective of robust GDP growth, which can increase investor confidence in riskier assets such as Bitcoin.
On the other hand, sluggish GDP growth may increase economic uncertainty, prompting investors to seek safer havens such as gold and potentially causing the Bitcoin price to fall.