Bitcoin ETF Inflows Surge: Will US GDP Data Impact BTC Price?

Bitcoin ETF inflows surged over $21 million on Wednesday, June 26th, driven by Fidelity's FBTC ETF. Grayscale's GBTC also saw positive flows after a period of outflows. This influx comes as the U.S. GDP growth data is set to be released, which could significantly influence the Bitcoin (BTC) price. Fidelity FBTC ETF recorded $18.6 million in new investments, while Grayscale's GBTC saw $4.3 million in inflows. BlackRock's Bitcoin ETF remained stable with zero flows. Other ETFs like Bitwise's BITB, Invesco Galaxy's BTCO, Franklin Templeton's EZBC, and Valkyrie's BRRR ETF also recorded zero flows. VanEck's HODL registered $3.4 million in inflows, while Ark experienced the only outflows amounting to $4.9 million. The Bitcoin price has been fluctuating between $61,000 and $62,000, indicating market indecision. The upcoming release of the US GDP growth rate data could potentially influence the market. Additionally, Friday, June 28th, marks a key date for quarterly futures and options settlements, historically known for market volatility. Investors are also bracing for the Federal Reserve's preferred inflation data, the Personal Consumption Expenditures (PCE) index, which coincides with a significant $6.72 billion options expiry. The max pain point for these Bitcoin options is $57,000, raising concerns of a potential crash. The German government has been liquidating its Bitcoin holdings, transferring another 595 BTC to major cryptocurrency exchanges. This action is part of a larger sell-off strategy, with over 2,000 BTC sold in recent days. The U.S. government also moved 4,000 BTC worth $241 million to Coinbase Prime on June 26th, putting downward pressure on Bitcoin's price. Bitcoin's current price hovers just above the critical $60,000 support level, which has been tested over five times since March 2024. The oldest cryptocurrency is trading below the 50-day simple moving average (SMA) but above the 200-day SMA, signaling a tug-of-war between bullish and bearish sentiments. The Relative Strength Index (RSI) for Bitcoin stands at 33, slightly above the oversold threshold of 30, which analysts believe could drive a recovery. However, the BTC price is currently trading below its moving average, suggesting potential further downside. Bitcoin has been consolidating within a broad range, with an upper boundary at $73,500 and a lower boundary at $60,000, over the past four months. For bulls to regain control, they need to push the price above $65,000, which may face resistance around $72,000. A break below $60,000 could trigger panic selling and potentially drive the price down to the $50,000 to $52,000 support zone. Strong GDP growth could boost investor confidence in riskier assets like Bitcoin, while weak GDP growth might fuel economic uncertainty, leading investors to seek safer havens and potentially causing Bitcoin price to drop.