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Bitcoin derivatives suggest a rise above $73,000, the next all-time high
Bitcoin derivatives suggest a rise above $73,000, the next all-time high
Bitcoin (BTC) recorded a significant increase of 13.80% over the last 7 days, reaching $71,926 on May 21. This puts the cryptocurrency just 2.5% away from its all-time high. BTC’s price surge appears to be driven by two main factors: growing optimism around the approval of a spot exchange-traded fund (ETF) for Ethereum in the US and a general market trend seeking protection from inflation , which also pushed gold and the S&P 500 index to new all-time highs.
The approval odds for an Ethereum spot ETF were raised from 25% to 75% by senior Bloomberg ETF analysts on May 20. This adjustment came after the US Senate struck down SEC Bulletin 121 on May 16, which had imposed strict capital requirements on banks holding customers’ digital assets. The Senate’s decision prompted a strategic reassessment at the White House, signaling a shift in the regulatory stance on cryptocurrencies.
SEC Chairman Gary Gensler, who had previously shown reluctance to classify Ethereum as a non-security or approve its spot ETF, requested updates to Ethereum spot ETF documentation on May 20. At least 5 ETF issuers have introduced their amended 19b filings with the SEC.
Bitcoin derivatives are visualization moderate bullish sentiment, with increased demand for long BTC positions via monthly futures. The BTC futures premium rose to 14%, the highest in five weeks, indicating moderately bullish market sentiment. The options market also reflects healthy sentiment, with a current bias of -8%, suggesting a market that is not overly optimistic despite the recent price increase.