Bitcoin
BTC rises 6% to reach $70K as Ethereum ETF rumors cause market frenzy
Bitcoin (BTC) surpassed the $70,000 mark on May 21, marking a significant milestone driven by a flurry of investments in spot Bitcoin exchange-traded funds (ETFs) and a broader market rally.
Bitcoin price rose to $70,325, a 6% increase in 24 hours, before settling at $68,700 at press time, based on data from CryptoSlate.
Ethereum (ETH) has likely led the rally over the past few hours – experiencing a surprising 14.5% surge in one hour on Monday amid speculation that the US SEC could approve spot Ethereum ETFs.
ETH rose from $3,143 to $3,518 at press time.
Renewed interest
O Renewed interest in Bitcoin ETFs follows weeks of outflows, with almost US$ 1 billion flowing into these funds, providing investors with exposure to the leading digital asset.
The surge has led to significant liquidations in the market, with more than $235 million in positions closed in the last 24 hours, including $63 million in Bitcoin short positions alone, according to CoinGlass.
Analysts indicate that most on-chain metrics suggest the start of a bull market although some show signs of potential peak. The recent rally near $60,000 has sparked renewed interest, with Farside Investors reporting approximately $950 million in inflows last week, a level not seen since March.
Bitcoin’s 51% year-to-date gain reflects investors’ anticipation of US monetary expansion, evidenced 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 spending by companies and individuals.
Meanwhile, the Federal Reserve’s efforts to manage inflation and avoid a recession could affect the liquidity and attractiveness of assets like Bitcoin.
Scarcity
Bitcoin reached a new all-time high of $73,737 in March and is now just 5% below that level. The recent run 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 have fallen to their lowest level in seven years. Data from CryptoQuant shows just 1,918,417 BTC available on major trading platforms as of May 19, a significant decrease from the previous year.
This shortage, coupled with the recent halving event that reduced potential new supply from miners, makes it increasingly difficult to justify a pessimistic outlook on Bitcoin.
The crypto community continues to closely watch Bitcoin’s price action unfold, with many wondering whether the digital asset will continue its rise or face a significant correction in the coming weeks.
Bitcoin Market Data
At the time of publication, 23:11 UTC in May. 20, 2024, Bitcoin is ranked first by market value and the price is up to 4.93% in the last 24 hours. Bitcoin has a market capitalization of US$1.37 trillion with a 24-hour trading volume of US$38.97 billion. Learn more about Bitcoin ›
Crypto Market Summary
At the time of publication, 23:11 UTC in May. As of October 20, 2024, the total cryptocurrency market is valued at US$2.57 trillion with a 24-hour volume of US$ 102.43 billion. Bitcoin dominance is currently in 53.41%. Learn more about the crypto market ›