BTC soars 6% to $70,000 as Ethereum ETF rumors spark market frenzy

Bitcoin (BTC) crossed the $70,000 mark on May 21st, marking a significant milestone with heavy investment in spot Bitcoin exchange traded funds (ETFs) and a broader market rally.

Bitcoin price rose 6% in 24 hours to $70,325 and settled at $68,700 at the time of writing. crypto slate data.

Ethereum (ETH) has undoubtedly led the rally over the past few hours, rising 14.5% in less than an hour on Monday amid speculation that the U.S. Securities and Exchange Commission (SEC) may approve a spot Ethereum ETF. experienced an astonishing rise.

ETH has increased from $3,143 to $3,518 at the time of writing.

new interest

The renewed interest in Bitcoin ETFs comes after weeks of outflows, with nearly $1 billion flowing into these funds, offering investors exposure to the leading digital asset.

According to Coinglass, this surge has led to massive liquidations in the market, with over $235 million in positions closed in the past 24 hours, including $63 million in short Bitcoin positions alone. It is said that

Analysts note that most on-chain indicators signal the beginning of a bull market, although some indicators show signs of a potential peak. The recent rally near $60,000 has sparked renewed interest, with Pharcide Investors reporting about $950 million in inflows last week, a level not seen since March. Ta.

Bitcoin's 51% year-to-date rise reflects investors' expectations for US financial expansion, as evidenced by the M2 monetary base exceeding $21 trillion in April 2024. This increase in currency in circulation suggests that inflationary pressures are building, even at a time when businesses and individuals were hesitant to spend.

Meanwhile, the Federal Reserve's efforts to control inflation and avoid recession could impact the liquidity and attractiveness of assets such as Bitcoin.

rarity

Bitcoin hit a new all-time high of $73,737 in March, but is currently just 5% below that level. The recent rally appears to be driven primarily by new Bitcoin ETFs that trade on traditional stock exchanges and allow investors to buy shares linked to the asset's price.

Underscoring the bullish sentiment, Bitcoin reserves on major exchanges have fallen to a seven-year low. According to CryptoQuant data, as of May 19, there were only 1,918,417 BTC available on major trading platforms, a significant decrease from the previous year.

This scarcity, coupled with the recent halving event that reduced potential new supply from miners, makes it increasingly difficult to justify a bearish outlook on Bitcoin.

The cryptocurrency community continues to monitor Bitcoin price trends, with many wondering whether the digital asset will continue to rise or face a significant correction in the coming weeks.

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