Tech
Why are Bitcoin, ETH, XRP and DOGE soaring?
THE cryptocurrency market has recorded impressive gains in the last 24 hours, with top coins reaching new heights. Bitcoin has surpassed the $70,000 mark and is now racing to recapture the previous all-time high.
ETH, XRP, SOL, DOGE, and other altcoins followed suit, posting notable gains over the past 24 hours. These ongoing market dynamics reflect renewed optimism among investors.
Behind this latest recovery there are several factors, including speculation on the approval of the Ethereum ETF and other factors contributing to the ongoing rally. Second Bloomberg ETFs analysts, the chances of approving the Spot Ethereum ETF have increased from 75% to 25%. This must have renewed investor optimism, thus fueling demand.
This bullish sentiment arose from the US SEC’s request that potential ETH ETF issuers update their 19b-4 filings. According to relationshipThere are two main deadlines for Spot Ethereum ETF applications.
The first is for VanEck on May 23 and the second for ArkInvest/21Shares on May 24. Several investors are already anticipating the news, some hoarding coins in anticipation of a potential ETF listing, which could trigger a rally.
Ethereum reacted to this growing speculation, trading at $3,713 up 20% as of 7:04 a.m. EST. Furthermore, Coinbase analysts believe that the chances of a possible Ethereum ETF approval are underestimated.
The analysts noticed that the price of Ethereum could rise to unexpected levels despite the SEC’s plans to classify Ethereum as a stock.
Still, QCP Capital made a bold prediction for Ethereum, stating that Ether could reach $4,000 in the near term if a spot ETH ETF is approved. Furthermore, QCP Capital believes that ETH could reach $5,000 at some point this year if the ETF approval materializes.
This optimism has also influenced other altcoins and the overall meme coin market. DOGE has risen more than 11% in the last 24 hours and is now trading at $0.1685 while targeting the $0.2 mark. XRP is up more than 7% and is trading at $0.553 as of 11:19 am EST.
Meanwhile, US Spot Bitcoin ETFs continue to advance, with higher inflows recorded over the past day. According to data from Distant investorsTHE Spot Bitcoin ETF reported a net inflow of $237.2 million as of Monday, May 20.
Ark Invest’s ARKB topped the list with $68.3 million in net inflows, while BlackRock’s IBIT recorded $66.4 million. Meanwhile, Grayscale’s outflows have declined significantly, with GBTC recording an inflow of $9.3 million as of May 20.
These increased inflows suggest renewed investor interest Bitcoinpushing the asset break to $71,132, an increase of 6.1% in 24 hours.
Crypto Bill gains support and contributes to positive sentiment
Another factor driving the cryptocurrency market rally it is notable from a regulatory perspective updates by the US Blockchain Association. In a letter addressed to President Johnson and Representative Jeffries, the organization supported a floor vote on the 21st Century Financial Technology and Innovation Act.
This proposed act aims to introduce a clear regulatory framework to support innovation and protect consumers. Major crypto firms such as Coinbase and Circle have also endorsed the bill, which promises regulatory clarity.
This development casts a ray of hope in the continued survival of the blockchain and crypto space. It could be one of the factors driving the ongoing bullish market sentiment. In light of this, the cryptocurrency market capitalization has increased by more than 8% in the last 24 hours and now stands at $2.62 trillion.
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