US BTC-Spot ETF Market Eyes a Second Session of Net Inflows

According to the CME FedWatch Tool, the probability of the Fed holding interest rates unchanged increased from 33.3% to 37.2% on Wednesday.

Fresh US data points and Federal Reserve (Fed) interest rate hike probabilities shifted on Wednesday.

According to the CME FedWatch Tool, the probability of the Fed holding interest rates at current levels increased. The market now prices in a 37.2% chance of no change, up from 33.3% on Tuesday. Meanwhile, the probability of a 25 basis point (bps) hike fell to 58.3% from 59.8%.

Notably, US dollar strength returned in recent sessions as investors consider US inflation numbers out on Friday, June 28. The Personal Income and Outlays Report could influence investor expectations regarding a September Fed rate cut. Hotter-than-expected numbers would sink the chances of a Q3 2024 rate cut and affect buyer demand for riskier assets.

Economists forecast the US Core PCE Price Index to rise 2.6% year-on-year in May after an increase of 2.8% in April. The April numbers left BTC down 1.27% on May 31, with sticky inflation numbers pressuring buyer appetite for cryptos.

Despite BTC ending Wednesday in negative territory, the US BTC-spot ETF market saw a modest return to net inflows. Could increased demand for US BTC-spot ETFs push BTC toward $70,000?

Fresh US Data Points Shift Fed Hike Probabilities, BTC-Spot ETF Net Inflows Return

Fresh US data points and Federal Reserve (Fed) interest rate hike probabilities shifted on Wednesday, influencing markets.

According to the CME FedWatch Tool, the probability of the Fed keeping interest rates at current levels rose. The market now prices in a 37.2% chance of no change, up from 33.3% on Tuesday. At the same time, the probability of a 25 basis point (bps) hike fell to 58.3% from 59.8%.

The shift in probabilities comes ahead of key US inflation data due on Friday, which will provide further insight into the state of the economy and the central bank’s monetary policy stance.

Meanwhile, the US dollar strength returned in recent sessions as investors prepare for the upcoming US inflation figures. The US Dollar Index (DXY) rose slightly, trading above 104.70. A weaker dollar has historically supported BTC price rallies.

In other news, the US Personal Income and Outlays Report could influence investor expectations regarding a September Fed rate cut. Hotter-than-expected numbers could reduce the chances of a Q3 2024 rate cut, impacting buyer demand for riskier assets like BTC.

Economists forecast the US Core PCE Price Index to rise 2.6% year-on-year in May, following an increase of 2.8% in April. Notably, the April inflation numbers led to a 1.27% decrease in BTC on May 31, as sticky inflation figures weighed on buyer interest in crypto.

Despite BTC ending Wednesday in negative territory, the US BTC-spot ETF market saw a modest return to net inflows. The US BTC-spot ETF saw total net outflows of $23.1 million on Monday.

However, on Tuesday, the US BTC-spot ETF market saw a total net inflow of $31.0 million, ending a seven-day streak of outflows.

Could increasing demand for US BTC-spot ETFs push BTC toward the $70,000 price level?

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