Markets
Top reasons why Bitcoin, ETH, XRP and DOGE prices are rising
The crypto market witnessed robust gains today as seen by the significant advance in major crypto prices. Notably, most major cryptocurrencies such as Bitcoin, Ethereum, Solana, XRP, Dogecoin and others recovered today, reflecting traders’ growing interest in digital currencies. So let’s take a look at the possible reasons that may have boosted investor confidence today.
Crypto Market Rallies, Here’s Why
A wave of ratios aided gains in the digital asset sector, pushing cryptocurrency prices to new highs after volatile trading in recent weeks. Notably, with the growing interest in the approval of the Ethereum ETF, there are also other reasons that have sparked optimism among market participants.
Ethereum ETF Fuels Crypto Market Confidence
The increasing odds of Spot Ethereum ETF approval from the US SEC has increased market confidence, as evidenced by the rise in Ethereum’s price today. Notably, Ethereum (ETH), the world’s second-largest cryptocurrency, has risen nearly 20% in the past 24 hours, fueled by growing optimism for the approval of an Ethereum ETF in sight.
However, this upward momentum follows the US SEC pressure for issuers to update their 19b-4 filings, significantly increasing the chances of ETF approval. Senior analysts at Bloomberg now estimate a 75% probability of approval, up from 25% previously.
It is important to note that the first decision on the VanEck Spot Ethereum ETF is expected on Thursday, May 23, which could cause even more price volatility. However, with growing optimism, Ethereum price rose above $3,650 for the first time since April 9.
Notably, this optimism has also had a positive impact on the broader altcoin market, with significant gains in several digital currencies. Meanwhile, on-chain analytics firm Santiment noted the widespread increase in market value, highlighting the ripple effect of Ethereum’s uptrend across the entire crypto market.
Read too: See why the price of Ethereum (ETH) is rising sharply today
Bullish predictions
With growing optimism on the approval of the Ether ETF, several market experts have provided a bullish outlook for the price of Ethereum. For context, QCP Capital recently said that if the Ethereum ETF receives approval from the US SEC, the price of ETH will reach $4,000 in the short term and $5,000 in the current year.
Echoing the bullish sentiment, popular crypto market analyst Miles Deutscher said Ethereum could rise to $6,400. Assessing Bitcoin’s performance following the approval of the Spot Bitcoin ETF in the US, he predicted that if the same momentum follows, Ethereum will likely reach $6,446 by the end of July.
Source: Miles Deutscher
However, QCP Capital, along with several other market observers, have also warned that if the SEC delays approval of the investment instrument, it could cause greater volatility in the broader market.
Bitcoin ETF Entry
O US Spot Bitcoin ETF continued to gain the attention of global market participants with its significant flows. After seeing positive momentum last week with inflows totaling around $950, this week also started on a bullish note.
According to Farside Investors, the global inflow into the Spot Bitcoin ETFs was $237.2 million on Monday, May 20th. Ark Invest’s ARKB topped the list with an inflow of $68.3 million, with BlackRock’s IBIT recording $66.4 million in fund flows. Notably, the exodus from Grayscale also appears to be slowing, with GBTC recording an inflow of $9.3 million.
Crypto Bill Gaining Support
The crypto market recovery today could also be driven by significant regulatory developments in the US. The Blockchain Association recently sent a letter to President Johnson and Representative Jeffries, asking for legislative support for the Financial Innovation and Technology for the 21st Century Act (FIT21 Act).
However, this proposed law aims to provide a clear regulatory framework, promoting innovation while ensuring consumer protection. The letter, supported by the Crypto Council for Innovation and 60 other entities, highlights the industry consensus on the need for this legislation.
Additionally, influential companies such as Andreessen Horowitz, Coin base, and Circle, along with key lawmakers, endorsed the bill. The FIT21 Act seeks to define the jurisdiction of digital assets between the CFTC and the SEC, promising safer and more efficient markets. Furthermore, this regulatory clarity is anticipated to increase investor confidence and drive sustainable growth in the crypto sector.
Conclusion
The crypto market has witnessed positive momentum since last week as investors appear to have regained confidence in the digital asset space. Furthermore, the recent cooling US CPI inflation The data also fueled investor sentiment in the broader financial space, let alone the crypto market.
Meanwhile, with bets rising towards Ethereum ETF approval and clarity on the crypto regulations, traders appear to be shifting their focus to cryptocurrencies. At the time of writing, the Bitcoin price rose 6.11% in the last 24 hours and traded at $70,918.95, with its one-day trading volume increasing 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. Furthermore, the XRP Price saw gains of 5.67% to $0.5431, while the top meme coin, Dogecoin Price added 8.40% to $0.1643.
According to data from CoinGlass, the Bitcoin Futures Open Interest rose 7.48% to 499.91 thousand BTC or US$35.52 billion. Simultaneously, Ethereum’s open interest increased 25.95% to $14.65 billion compared to yesterday.
Read too: Pro-XRP Lawyer Claims SEC Knows Ripple ODL Sales Are Not Investment Contracts