BTC rises 6% to $70,000 as Ethereum ETF rumors trigger market frenzy

Bitcoin (BTC) breached the $70,000 mark on Could 21, a significant milestone led by a flood of funding in spot bitcoin exchange-traded funds (ETFs) and a broader market restoration.

The value of Bitcoin climbed to $70,325, a 6% acquire in 24 hours, earlier than settling at $68,700 at press time. fromcrypto knowledge.

Ethereum (ETH) has arguably led the rally over the previous few hours, experiencing a surprising 14.5% acquire in a single hour on Monday amid hypothesis that the US SEC might approve a spot Ethereum ETF.

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

Renewed curiosity

The renewed curiosity in bitcoin ETFs follows weeks of outflows, with almost $1 billion flowing into these funds, giving traders publicity to the main digital asset.

The surge led to vital liquidations available in the market, with greater than $235 million in positions closed up to now 24 hours, together with $63 million in bitcoin brief positions alone, in response to CoinGlass.

Analysts recommend that almost all on-chain metrics point out the start of a bull market, though some are displaying indicators of a possible high. A latest rally close to $60,000 has sparked renewed curiosity, with Farside Traders saying an influx of round $950 million final week, a stage not seen since March.

Bitcoin's 51% year-to-date acquire displays traders' expectations of financial enlargement within the US, as 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 when corporations and people have been hesitant to spend .

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

Lack

Bitcoin hit a brand new all-time excessive of $73,737 in March and is now simply 5% beneath that stage. The latest run seems to be largely pushed by new bitcoin ETFs that commerce on conventional exchanges and permit traders to purchase shares that observe the asset's value.

In assist of bullish sentiment, Bitcoin reserves on main exchanges fell to a seven-year low. Information from CryptoQuant reveals only one,918,417 BTC accessible on main buying and selling platforms as of Could 19, a big drop from the earlier yr.

This scarcity, together with the latest halving that diminished potential new provide from miners, makes the bearish outlook on Bitcoin more and more tough to justify.

The crypto group continues to look at Bitcoin's value motion carefully, with many questioning whether or not the digital asset will proceed its rise or face a big correction within the coming weeks.

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