News
Top reasons why Bitcoin, ETH, XRP and DOGE prices are rising
The cryptocurrency market recorded robust gains today, as noted by the significant advancement in major cryptocurrency prices. Notably, most major cryptocurrencies such as Bitcoin, Ethereum, Solana, XRP, Dogecoin and others rallied today, reflecting traders’ growing interest in digital currencies. So, let’s take a look at the potential reasons that may have boosted investor confidence today.
The cryptocurrency market is rising: here’s why
A flurry of reasons has aided gains in the digital asset sector, driving cryptocurrency prices to new heights after volatile trading in recent weeks. Notably, with the growing interest in the Ethereum ETF approval, there are also other reasons that have sparked optimism among market participants.
Ethereum ETF Fuels Crypto Market Confidence
The growing odds of Ethereum spot ETF The approval by the US SEC has increased market confidence, as evidenced by the surge in Ethereum price today. In particular, Ethereum (ETH), the world’s second largest cryptocurrency, has grown by almost 20% in the last 24 hours, fueled by growing optimism over the approval of a spot Ethereum ETF.
Meanwhile, this bullish momentum follows the US SEC push issuers to update their 19b-4 filings, significantly increasing the ETF’s chances of approval. Bloomberg senior analysts now estimate a 75% probability of approval, up from 25% previously.
It is worth noting that the first decision on the VanEck Spot Ethereum ETF is expected on Thursday, May 23, potentially causing further 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 across various digital currencies. Meanwhile, on-chain analytics firm Santiment noted the widespread increase in market capitalization, highlighting the ripple effect of Ethereum’s bullish trend on the entire cryptocurrency market.
Read also: That’s why the price of Ethereum (ETH) is rising heavily today
Bullish forecasts
With optimism surging over the Ether ETF approval, several market experts have given a bullish outlook for the Ethereum price. For context, QCP Capital recently stated that if the Ethereum ETF receives approval from the US SEC, the price of ETH would reach $4,000 in the near term and $5,000 in the current year.
Echoing the bullish sentiment, renowned cryptocurrency market analyst Miles Deutscher said that Ethereum could reach $6,400. Evaluating Bitcoin’s performance after 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.
However, QCP Capital, along with many other market watchers, also warned that if the SEC delays in approving the investment vehicle, it could cause greater volatility in the broader market.
Inflow of Bitcoin ETFs
THE Spot Bitcoin ETF in the United States has continued to attract the attention of global market participants with its significant inflows. After seeing positive momentum last week, with total inflows around $950, this week also started on a bullish note.
According to Farside Investors, the overall inflow into the Spot Bitcoin ETF was $237.2 million on Monday, May 20. Ark Invest’s ARKB topped the list with an inflow of $68.3 million, while BlackRock’s IBIT saw fund flows of $66.4 million. Notably, the Grayscale exodus also appears to be tapering off, with GBTC seeing an inflow of $9.3 million.
Cryptocurrency Bill Gains Support
Today’s cryptocurrency market rally may also be driven by significant regulatory developments in the United States. The Blockchain Association recently sent a letter to President Johnson and Representative Jeffries, urging legislative support for the Financial Innovation and Technology for the 21st Century Act (FIT21 Act).
Meanwhile, the proposed act 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 industry consensus on the need for this legislation.
Furthermore, influential companies such as Andreessen Horowitz, Coinbaseand Circle, along with key legislators, passed the bill. The FIT21 Act seeks to define digital asset jurisdiction between the CFTC and SEC, promising safer and more efficient markets. Furthermore, this regulatory clarity is expected to boost investor confidence and spur sustainable growth in the cryptocurrency industry.
Bottom line
The cryptocurrency market has seen positive momentum since last week, as investors appear to have regained confidence in the digital asset space. Furthermore, the recent cooling of the US CPI inflation the data has also fueled investor sentiment in the broader financial space, not to mention the cryptocurrency market.
Meanwhile, with the surge in bets towards Ethereum ETF approval and clarity on the cryptographic regulations, traders seem to be shifting their attention towards cryptocurrencies. At the time of writing, the Bitcoin price rose 6.11% in the past 24 hours and traded at $70,918.95, with its one-day trading volume increased by 129.96% to $52.87 billion.
At the same time, the Ethereum price rose 17.80% to $3,655.47, and the Solana price it jumped 2.32% to $181.68. Furthermore, 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 Open Interest on Bitcoin futures rose 7.48% to 499.91k BTC or $35.52 billion. At the same time, Ethereum Open Interest advanced 25.95% to $14.65 billion compared to yesterday.
Read also: Pro-XRP Lawyer Says SEC Knows Ripple ODL Sales Are Not Investment Contracts
✓ Share:
Rupam, a seasoned professional with 3 years in the financial market, has honed his skills as a meticulous research analyst and insightful journalist. He finds joy in exploring the dynamic nuances of the financial landscape. Currently working as a sub-publisher at Coingape, Rupam’s expertise goes beyond conventional boundaries. His contributions include breaking news stories, insights into AI-related developments, providing real-time cryptocurrency market updates, and presenting in-depth economic news. Rupam’s journey is marked by a passion for unraveling the complexities of finance and delivering impactful stories that resonate with diverse audiences.
The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for personal financial loss.