ETFs
Bitcoin Reaches $71,000 Level Today; what motivates the rally?
Bitcoin (BTC) climbed above $71,000 early Tuesday, reaching its highest level since early April, while Ether surged more than 19% to $3,700. The increase follows Bloomberg analysts increasing the likelihood of an ETH spot exchange-traded fund (ETF) being approved in the US to 75%.
According to the latest data from SoSoValue, cited by The Economic Times, Bitcoin ETFs saw total net inflows exceeding $241 million on May 20. Notably, BlackRock’s Bitcoin ETF, IBIT, attracted over $66 million in net inflows, while Fidelity’s Bitcoin ETF, FBTC saw net inflows of $64 million.
Read also : SEBI recommends regulators oversee cryptocurrency trading, RBI still sees ‘macro risk’
“The crypto market is booming as investors respond to a torrent of good news. ETH climbed 19% in 24 hours to surpass $3,700, while Bitcoin crossed the $71,000 mark, up almost 8%. The catalyst for this push appears to be the approval of the ETF, with discussions suggesting the SEC may do a 180 on this increasingly polarizing issue,” said Rajagopal Menon, vice president of WazirX.
The global cryptocurrency market capitalization jumped 7.9% to around $2.61 trillion in the past 24 hours.
Other major cryptocurrencies also saw significant gains: BNB (5.1%), Solana (3.5%), XRP (5.7%), Dogecoin (8.6%), Toncoin (5%), Shiba Inu (6.8%), Avalanche (14%). , and Cardano (7.8%).
What motivated the gathering?
Markets began to rally late Monday after Bloomberg analysts Eric Balchunas and James Seyffart increased the likelihood of an ether spot ETF from about 20% to 75%. Subsequently, CoinDesk reported that the U.S. Securities and Exchange Commission (SEC) had asked exchanges seeking to list ether exchange-traded funds to update their 19b-4 filings by an important deadline this week.
This happened when the SEC required aspiring ether ETF trades to update 19b-4 filings by the May 23 deadline. However, it is still unlikely that the ETH ETF will be approved this week – the SEC seems to be moving in a positive direction, and that is what has triggered the market.
At the same time, Ethereum, the second largest cryptocurrency by value, surged 19.2% to $3,667 in today’s trading session.
Read also : The stage is set for the return of Binance and Kucoin to India
“Spot Ethereum #ETF approval chances jumped from 25% to 75% as the #SEC requires exchanges to update 19B-4 filings on an expedited basis for Spot Ethereum ETFs. This is huge news for the future of Ethereum, indicating that it could soon follow in the footsteps of #Bitcoin. As a result, the market is witnessing significant movement and is expected to gain further momentum,” said Avinash Shekhar, Co-Founder and CEO, Pi42.
Over the past day, the market capitalization of Bitcoin, the world’s leading cryptocurrency, jumped to $1.402 trillion. According to CoinMarketCap, Bitcoin dominance now stands at 53.79%. Additionally, Bitcoin trading volume over the past 24 hours saw a significant increase, climbing 135% to $52.07 billion.
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Published: May 21, 2024, 04:51 PM IST
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