The cryptocurrency market experienced a significant surge on Monday, with Bitcoin (BTC) gaining 1.35% to close the session at $69,365. This increase was driven by lingering hopes of a September Fed rate cut and recent US BTC-spot ETF market flow trends. Despite the recent services PMI and labor market data, the financial markets remain divided on whether the Fed will cut rates before the end of Q3 2024.

_US BTC-Spot ETF Market Flow Trends and ETH-Spot ETF News_

The US BTC-spot ETF market saw total net inflows of $1,056.7 million in the week ending May 24, up from 948.3 million in the week ending May 17. This increase in investor appetite for BTC-spot ETFs supported buyer demand for BTC going into the Monday session. Additionally, progress toward an ETH-spot ETF market remained an ETH tailwind, with ETF Store President Nate Geraci speculating that the SEC would approve ETH-spot ETFs within the next few weeks.

_The Fed Rate Path and Crypto Regulatory Environment_

The financial markets remain divided on whether the Fed will cut rates before the end of Q3 2024. Despite this uncertainty, lingering hopes of a September Fed rate cut drove buyer demand for BTC. Additionally, US Republican Party front-runner Donald Trump continued voicing his support for cryptos, which may force the current US administration to curb its anti-crypto rhetoric and pressure the SEC to soften its regulation through enforcement approach to the US digital asset space.

_Technical Analysis_

BTC hovered above the 50-day and 200-day EMAs, affirming the bullish price signals. A BTC breakout from the $69,000 resistance level could give the bulls a run at the Monday high of $70,601. A break above $70,601 could support a move to the $73,808 all-time high. Conversely, a BTC break below the 50-day EMA could give the bears a run at the $64,000 support level.

ETH remained comfortably above the 50-day and 200-day EMAs, affirming the bullish price signals. An ETH return to the $4,000 handle could give the bulls a run at the March high of $4,091. Conversely, an ETH drop below the $3,835 support level could signal a fall toward the $3,480 support level.

_Conclusion_

In conclusion, the recent surge in Bitcoin's price to $70K is primarily driven by Fed speculation and ETF flows. The US BTC-spot ETF market flow trends and ETH-spot ETF news have supported buyer appetite for BTC, despite the uncertainty surrounding the Fed's rate path. As the crypto market continues to evolve, it's essential to stay informed about the latest developments and their implications for the future of decentralized finance.