Bitcoin loses 2.7% today and drops below $68.000 level as US dollar and yields surged after much stronger than expected US flash PMI readings.
- Strong services may be a signal that Fed will be hawkish further, supporting 'higher for longer' policy stance. Traders now see first US rate cut possible in December vs November before. This situation pressured momentum of risk assets; both cryptocurrencies and stock market erased early gains despite 10% euphoria on Nvidia shares.
- Despite sell-off on Bitcoin, Ethereum didn't react with strong drop, awaiting SEC decision related to spot Ethereum VanEck ETFs which will be published today. Documents show that bipartisan group of House lawmakers (Tom Emmer / NJ Democrat Josh Gottheimer) sent to SEC chair, Gary Gensler a letter urging the agency to approve spot Ether ETFs.
BITCOIN vs USDIDX (US dollar futures, orange chart)
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Create account Try a demo Download mobile app Download mobile appEthereum didn't reacted so rapidly to PMI readings but also dropped before, after lower than expected claims, signalling still strong US job market (also supporting dollar). It may be a signal, that investors await today SEC decision and US spot Ethereum ETF acceptance.
ETHEREUM vs USDIDX (orange chart)
Source: xStation5
Bitcoin (D1 chart)
Major cryptocurrency loses today, dropping almost 5% from local highs reached at $72.000 level. The rally was clearly driven by Ethereum spot ETFs acceptance rumors.
Source: xStation5
Inflows tu US Bitcoin ETFs (especially BlackRock's IBIT) rised in second half of May 2024. Source: Bloomberg Finance L.P
