Germany Sells Bitcoin, But Institutional Investors Pile into Bitcoin ETFs

• Bitcoin dipped 0.44% to $57,827 despite ETF inflows and potential US rate cuts.
• Significant BTC ETF inflows: Fidelity Wise Origin ($57.8M) and Franklin ($31.7M).
• Ethereum trades bearishly short-term; key levels at $3,244 resistance and $3,033 support.

Bitcoin dipped, while ETF inflows continued for a fourth day, highlighting the mixed performance of the cryptocurrency market amid varied influences including ETF flows, government sales, and potential shifts in US monetary policy.

Bitcoin (BTC) dipped by 0.44%, retreating from its modest 2.32% gain on Tuesday to close at $57,827. Meanwhile, the US spot BTC ETF sector saw net inflows for the fourth consecutive session, totaling $147.37 million on Wednesday.

Fidelity Wise Origin Bitcoin Fund (FBTC) led the pack with substantial inflows of $57.8 million, according to data from SosoValue . Franklin Bitcoin ETF (EZBC) also experienced net inflows of $31.7 million, while Grayscale Bitcoin Trust (GBTC) ended its session with outflows totaling $8.2 million.

US equity markets also enjoyed gains, with the Nasdaq Composite Index rising by 1.18%. Additionally, 10-year Treasury yields fell by 12 basis points as optimism grew over a potential Fed rate cut in September. The CME FedWatch Tool indicated a slight increase in the probability of a September rate cut, rising from 73.2% to 73.3%.

Arkham Intelligence reported on the reduced German BTC holdings on Wednesday from 23,964 BTC to 15,552 BTC.

Despite these sales, Blackrock’s iShares Bitcoin Trust ETF saw significant net inflows, potentially offsetting the market impact. However, the upcoming US CPI Report could significantly influence these dynamics, with higher inflation potentially dampening demand for BTC-spot ETFs.

BTC traded below the 50-day and 200-day EMAs, signaling bearish momentum. A move above the 200-day EMA could propel BTC towards the $60,365 resistance level. Conversely, a drop below $55,000 might lead to further declines towards $52,884.

Additionally, Ethereum (ETH) remained above the 200-day EMA but below the 50-day EMA, indicating bearish short-term and bullish long-term signals. A surge past the $3,244 resistance level could bring the 50-day EMA into focus, potentially driving ETH towards $3,480. Conversely, a drop below the 200-day EMA and the $3,033 support level could see ETH falling towards $2,800.