Bitcoin Achieves Six-Week Price Record Amid Ethereum Rally and ETF Expectations
Bitcoin (BTC) has reached a six-week price record, driven by the recent bullish rally of Ethereum and the anticipation of the approval of exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) in the near future.
According to an analysis conducted by the Santiment platform on May 20, Bitcoin experienced a significant price surge, reaching $71.4K for the first time in six weeks. This analysis examined the price movement of the largest cryptocurrency in the market during Ethereum’s rally yesterday.
The excitement surrounding Ethereum’s first spot ETFs has acted as a catalyst for one of the crypto market’s top five days in 2024. Within 24 hours, the prices of ETH, UNI, PEPE, BONK, and LDO have all increased by over 20%. Bitcoin’s jump to $71.4K, although impressive, is almost overshadowed by these developments.
Could the approval of an Ethereum ETF lead to a new all-time high for the price of Bitcoin? The broader cryptocurrency market has experienced a significant surge since May 20, particularly driven by the rapid appreciation of Ethereum. This sudden movement was fueled by optimistic updates regarding the potential approval of Ethereum Spot ETFs by the SEC. Bitcoin tested the $71,000 zone amidst this recent price surge.
It is important to note that the approval of ETFs based on Bitcoin in cash has not only increased the value of the cryptocurrency but has also contributed to the growth of the industry as a whole. The highest price Bitcoin has ever reached was on March 14 when it traded at $73,737.94. At the time of this publication, the price of Bitcoin was quoted at $70,767.70, reflecting a 5.8% increase in the last 24 hours. Currently, Bitcoin’s price is 4.38% away from reaching its all-time high.
Renowned cryptocurrency analyst Ali Martinez recently suggested the potential for a Bitcoin rally to the $77,000 level. Martinez stated, “While predicting the future price action of any asset can be challenging, several on-chain metrics can indicate potential price levels that investors should pay attention to. One such metric is the MVRV extreme deviation price ranges. Bitcoin recently surpassed the +0.5σ price range, which is currently at $64,600. Historically, this rise has led BTC to test the 1.0σ price range, supported by increased demand. This price range currently stands at around $77,000.”
Bitcoin’s recent recovery in May has been supported, in part, by the resumption of investments in BTC spot index funds in the United States. These ETFs have played a critical role in positively influencing the cryptocurrency market, demonstrating the growing confidence of institutional investors in digital currency.
The possibility of Bitcoin reaching $70,000 gains momentum with Santiment’s recent analysis. Santiment, a renowned on-chain analysis company, has identified a significant increase in positive sentiment towards Bitcoin, as reflected by its weighted sentiment metric.
Disclaimer: The views and opinions expressed by the author or anyone mentioned in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing or trading cryptocurrencies carries a risk of financial loss.
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This news has the potential to trigger a new bullish rally for Bitcoin. Details