The crypto market has witnessed robust gains today, as noted by the significant advancement in the major crypto prices. Notably, most of the major cryptos like Bitcoin, Ethereum, Solana, XRP, Dogecoin, and others have rallied today, reflecting the growing interest of traders in digital currencies. So, let’s take a look at the potential reasons that may have bolstered the investors’ confidence today.
Crypto Market Rallies, Here’s Why
A flurry of reason has helped gains in the digital asset sector, sending the crypto prices to new heights after volatile trading over the past few weeks. Notably, with soaring interest in the Ethereum ETF approval, there are other reasons as well that have sparked optimism among the market participants.
Ethereum ETF Fuels Crypto Market Confidence
The increasing odds of the Spot Ethereum ETF approval by the U.S. SEC have raised market confidence, as evidenced by the soaring price of Ethereum today. Notably, Ethereum (ETH), the world’s second-largest cryptocurrency, surged nearly 20% in the past 24 hours, fueled by growing optimism for the approval of a spot Ethereum ETF.Â
Meanwhile, this bullish momentum follows the U.S. SEC’s push for issuers to update their 19b-4 filings, significantly increasing the chances of ETF approval. Senior Bloomberg analysts now estimate a 75% likelihood of approval, up from 25% earlier.
It’s worth noting that the first decision on the VanEck Spot Ethereum ETF is expected by Thursday, May 23, potentially causing further price volatility. However, with soaring optimism, Ethereum’s price climbed above $3,650 for the first time since April 9.Â
Notably, this optimism has also positively impacted the broader altcoin market, with significant gains across various digital currencies. Meanwhile, on-chain analytics firm Santiment noted the widespread market cap increase, highlighting the ripple effect of Ethereum’s bullish trend on the entire crypto market.
Also Read: Here’s Why the Ethereum (ETH) Price is Rising Heavily Today
Bullish Predictions
With the soaring Ether ETF approval optimism, several market pundits have provided a bullish outlook for the Ethereum price. For context, QCP Capital has recently said that if the Ethereum ETF receives approval by the U.S. SEC, the ETH price hit $4,000 in the short term, and $5,000 in the ongoing year.
Echoing the bullish sentiment, popular crypto market analyst, Miles Deutscher said that Ethereum could rally to $6,400. Evaluating the performance of Bitcoin following the Spot Bitcoin ETF approval in the U.S., he has predicted that if the same momentum follows, Ethereum is likely to hit $6,446 by July end.
However, QCP Capital, along with several other market watchers also warned that if the SEC delays in approving the investment instrument, it could cause heightened volatility in the broader market.
Bitcoin ETF Inflow
The U.S. Spot Bitcoin ETF has continued to gain attention from the global market participants with its significant inflows. After noting a positive momentum last week, with inflows totaling around $950, this week also started with a bullish note.
According to Farside Investors, the overall inflow into the Spot Bitcoin ETFs was $237.2 million on Monday, May 20. Ark Invest’s ARKB topped the list with a $68.3 million influx, with BlackRock’s IBIT recording $66.4 million in fund flows. Notably, the Grayscale’s exodus also seems to be abating, with GBTC recording an inflow of $9.3 million.
Crypto Bill Gaining Support
The crypto market rally today could be also driven by significant regulatory developments in the U.S. The Blockchain Association recently sent a letter to Speaker Johnson and Representative Jeffries, urging legislative support for the Financial Innovation and Technology for the 21st Century Act (FIT21 Act).Â
Meanwhile, this proposed act aims to provide a clear regulatory framework, fostering innovation while ensuring consumer protection. The letter, backed by the Crypto Council for Innovation and 60 other entities, highlights the industry’s consensus on the necessity of this legislation.Â
In addition, influential firms like Andreessen Horowitz, Coinbase, and Circle, along with key lawmakers, have endorsed the bill. The FIT21 Act seeks to define the jurisdiction of digital assets between the CFTC and SEC, promising safer and more efficient markets. Besides, this regulatory clarity is anticipated to boost investor confidence and drive sustainable growth in the crypto sector.
Bottom Line
The crypto market has witnessed positive momentum since last week, as the investors seem to have regained confidence in the digital asset space. In addition, the recent cooling of U.S. CPI inflation data has also fueled the investors’ sentiment in the broader financial space, let alone the crypto market.
Meanwhile, with soaring bets towards the Ethereum ETF approval and clarity on the crypto regulations, the traders seem to be shifting their focus towards the cryptos. As of writing, the Bitcoin price surged 6.11% over the last 24 hours and traded at $70,918.95, with its one-day trading volume rising 129.96% to $52.87 billion.
Simultaneously, the Ethereum price rose 17.80% to $3,655.47, and the Solana price jumped 2.32% to $181.68. In addition, the XRP price noted gains of 5.67% to $0.5431, while the leading meme coin, Dogecoin price added 8.40% to $0.1643.
According to CoinGlass data, the Bitcoin Futures Open Interest rose 7.48% to 499.91k BTC or $35.52 billion. Simultaneously, the Ethereum Open Interest advanced 25.95% to $14.65 billion from yesterday.
Also Read: Pro-XRP Lawyer Says SEC Knows Ripple ODL Sales Are Not Investment Contracts
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
