BTC surges 6% to touch $70k as Ethereum ETF rumors cause market frenzy

Bitcoin (BTC) surged previous the $70,000 mark on Could 21, marking a major milestone pushed by a flood of funding into spot Bitcoin exchange-traded funds (ETFs) and a broader market rally.

Bitcoin’s value climbed to $70,325, a 6% enhance over 24 hours, earlier than settling at $68,700 as of press time, based mostly on CryptoSlate information.

Ethereum (ETH) arguably led the rally over the previous couple of hours — experiencing a staggering 14.5% rise inside an hour on Monday amid hypothesis that the US SEC would possibly approve spot Ethereum ETFs.

ETH climbed from $3,143 to $3,518 as of press time.

Renewed curiosity

The renewed interest in Bitcoin ETFs follows weeks of outflows, with practically $1 billion flowing into these funds, offering buyers with publicity to the main digital asset.

The surge has led to vital liquidations available in the market, with over $235 million in positions closed previously 24 hours, together with $63 million in Bitcoin brief positions alone, in line with CoinGlass.

Analysts point out that almost all on-chain metrics recommend the beginning of a bull market regardless of some displaying indicators of potential peaking. The current bounce close to $60,000 has sparked renewed curiosity, with Farside Buyers reporting roughly $950 million in inflows final week, a degree not seen since March.

Bitcoin’s 51% year-to-date achieve displays buyers’ anticipation of US financial growth, evidenced by the M2 financial base surpassing $21 trillion in April 2024. This enhance in circulating cash suggests rising inflationary pressures regardless of a interval of firm and particular person spending hesitancy.

In the meantime, the Federal Reserve’s efforts to handle inflation and keep away from a recession may have an effect on liquidity and the attractiveness of belongings like Bitcoin.

Shortage

Bitcoin reached a brand new all-time excessive of $73,737 in March and is now simply 5% under that degree. The current run seems to be largely pushed by the brand new Bitcoin ETFs, which commerce on conventional inventory exchanges and permit buyers to purchase shares that monitor the value of the asset.

Supporting the bullish sentiment, Bitcoin reserves on main exchanges have dropped to a seven-year low. Information from CryptoQuant reveals just one,918,417 BTC obtainable on main buying and selling platforms as of Could 19, a major lower from the earlier 12 months.

This shortage, coupled with the current halving occasion that diminished the potential new provide from miners, makes a bearish outlook on Bitcoin more and more tough to justify.

The crypto neighborhood continues to look at carefully as Bitcoin’s value motion unfolds, with many questioning whether or not the digital asset will proceed its ascent or face a major correction within the coming weeks.

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