XRPUSD 181024 daily chart
Bitcoin: US economic data dampens expectations for Fed rate cut
While news related to the SEC vs. Ripple case garnered attention, the US economic calendar continued to impact BTC demand.
U.S. retail sales rose 0.4% in September after increasing 0.1% in August. Additionally, the number of new unemployment insurance claims fell from 260,000 (the week ending October 5) to 241,000 (the week ending October 12).
Tighter labor market conditions could support wage growth and boost consumer spending and demand-driven inflation. Thursday’s U.S. data means the Fed may not be able to take too aggressive policy steps to bring inflation back to target and into a soft landing.
The probability that the Fed will cut interest rates by 25 basis points in November fell from 93.7% to 87.7% between October 16th and October 17th, according to the CME FedWatch tool.
If expectations for Fed rate cuts in November and December decline, demand for BTC could increase.
US BTC spot ETF market focuses on 5-day winning streak
On October 16th, the US BTC spot ETF market had net inflows of $458.5 million. This momentum continued until Thursday, October 17th. According to Farside Investors:
Net inflows into the Fidelity Wise Origin Bitcoin Fund (FBTC) were $11.7 million. (Previous day: +$35 million). The ARK 21Shares Bitcoin ETF (ARKB) had net inflows of $100 million. (Previous day: +$14.7 million). Grayscale Bitcoin Trust (GBTC) reported net inflows of $45.7 million. (The previous day: zero).
Excluding iShares Bitcoin Fund (IBIT) and Invesco Galaxy Bitcoin ETF (BTCO), the US BTC spot ETF market had total net inflows of $161.5 million, with sequential net inflows of 5. The session was extended.
Commenting on the current wave of inflows, Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, said:
“Bitcoin ETFs have surpassed $20 billion in total net flows (the highest number of imps in the ETF world, the most difficult metric to grow) for the first time after a huge week of $1.5 billion. By the way, gold ETFs It took about five years to reach the same figure. Total assets are now $65 billion, which is also a high.”
Excluding Thursday’s inflows, IBIT recorded total net inflows of $761.7 million this week. US BTC spot ETF market flow data offset the impact of US economic indicators, limiting BTC losses on Thursday.
Bitcoin (BTC) price fluctuations
On Thursday, BTC fell 0.32%, partially reversing its 1.53% gain from the previous session, to close at $67,303. Despite holding the $67,000 handle for the second time since July 28, BTC ended its three-day winning streak.
Trends in the US BTC spot ETF market flow will continue to drive BTC demand. The six-day winning streak could break through Thursday’s high of $68,387 and retarget $70,000. BTC demand and supply trends remain important in the short term.
