Bitcoin, the world’s largest cryptocurrency, has reached a new six-week price record following a surge in Ethereum’s value. The recent rally in Ethereum’s price has sparked speculation that the U.S. Securities and Exchange Commission (SEC) may approve exchange-traded funds (ETFs) for the cryptocurrency in the near future.
According to Santiment, a platform that analyzes market trends, Bitcoin’s price soared to $71,400 on May 20. This increase in value was overshadowed by the excitement surrounding Ethereum’s potential ETFs, which resulted in one of the top five days for the crypto market in 2024. Other cryptocurrencies, including ETH, UNI, PEPE, BONK, and LDO, also experienced significant gains of over 20% in just 24 hours.
The potential approval of an Ethereum ETF could have a significant impact on Bitcoin’s price, leading to a new all-time high. The broader cryptocurrency market has already seen substantial growth since May 20, largely driven by Ethereum’s rapid appreciation. The positive updates regarding Ethereum Spot ETFs have fueled optimism among investors.
It is important to note that the approval of ETFs based on Bitcoin in cash has previously increased the value of the cryptocurrency and stimulated industry growth. Bitcoin reached its all-time high on March 14, trading at $73,737.94. At the time of writing, Bitcoin was priced at $70,767.70, reflecting a 5.8% increase in the last 24 hours. The current price is just 4.38% away from reaching its previous peak.
Renowned cryptocurrency analyst Ali Martinez has suggested that Bitcoin could rally to $77,000 based on on-chain metrics. Martinez emphasized the importance of monitoring metrics such as the MVRV extreme deviation price ranges. Bitcoin’s recent rise above the +0.5σ price range, currently at $64,600, historically leads to testing the 1.0σ price range, which is currently around $77,000.
Bitcoin’s recovery in May has been supported by renewed investments in BTC spot index funds in the United States. These ETFs have played a crucial role in positively influencing the cryptocurrency market, indicating the growing confidence of institutional investors in digital assets.
Santiment’s analysis further strengthens the possibility of Bitcoin reaching $70,000. The report highlights a significant increase in positive sentiment towards Bitcoin, as indicated by the weighted sentiment metric.
It is important to note that the views expressed in this article are for informational purposes only and do not constitute financial advice. Investing in cryptocurrencies carries a risk of financial loss.
In conclusion, the recent surge in Ethereum’s value and the potential approval of ETFs have driven Bitcoin to a new six-week price record. The cryptocurrency market is experiencing significant growth, and there is a possibility of Bitcoin reaching its all-time high. However, investors should exercise caution and be aware of the risks involved in cryptocurrency investments.