Markets
BTC Rises 6% to Hit $70,000 as Ethereum ETF Rumors Cause Market Frenzy
Bitcoin (BTC) surpassed the $70,000 mark on May 21, marking a significant milestone driven by a wave of investment in spot Bitcoin exchange-traded funds (ETFs) and a broader market rally.
Bitcoin price rose to $70,325, up 6% in 24 hours, before stabilizing at $68,700 at the time of writing, based on CryptoSlate data.
Ethereum (ETH) has likely led the rally over the past two hours, rising by a whopping 14.5% in the space of an hour on Monday, amid speculation that the US SEC may approve spot Ethereum ETFs.
As of this writing, ETH has risen from $3,143 to $3,518.
Renewed interest
THE renewed interest in Bitcoin ETFs, weeks of outflows follow, with almost $1 billion flowing into these funds, providing investors with exposure to the leading digital asset.
According to CoinGlass, the surge has led to significant liquidations in the market, with over $235 million in positions closed in the past 24 hours, including $63 million in short Bitcoin positions alone.
Analysts indicate that most on-chain metrics suggest the start of a bull market despite some showing signs of potential peaking. The recent rebound near $60,000 has sparked renewed interest, with Farside Investors reporting inflows of around $950 million last week, a level not seen since March.
Bitcoin’s 51% year-to-date gain reflects investor anticipation of US monetary expansion, highlighted by the M2 monetary base surpassing $21 trillion in April 2024. This increase in circulating money suggests growing inflationary pressures despite a period of hesitation in corporate and individual spending.
Meanwhile, the Federal Reserve’s efforts to manage inflation and avoid a recession could affect the liquidity and attractiveness of assets like Bitcoin.
Shortage
Bitcoin hit a new all-time high of $73,737 in March and is now just 5% below that level. The recent rally appears to be largely driven by new Bitcoin ETFs, which trade on traditional exchanges and allow investors to buy shares that track the asset’s price.
Supporting the bullish sentiment, Bitcoin reserves on major exchanges fell to a seven-year low. Data from CryptoQuant shows only 1,918,417 BTC available on major trading platforms as of May 19, a significant decline from the previous year.
This scarcity, combined with the recent halving that has reduced potential new supply from miners, makes it increasingly difficult to justify a bearish outlook on Bitcoin.
The crypto community continues to closely watch Bitcoin’s price action, with many wondering whether the digital asset will continue its rise or face a significant correction in the coming weeks.
Bitcoin market data
As of press time 11:11pm UTC in May. 20, 2024, Bitcoin is ranked #1 by market capitalization and the price is up by 4.93% in the last 24 hours. Bitcoin has a market capitalization of $1.37 trillion with a 24-hour trading volume of $38.97 billion. Learn more about Bitcoin ›
Cryptocurrency Market Summary
As of press time 11:11pm UTC in May. 20, 2024, the total cryptocurrency market is valued at $2.57 trillion with a 24 hour volume of $102.43 billion. Bitcoin’s dominance is currently at 53.41%. Find out more about the cryptocurrency market ›