Bitcoin (BTC) experienced a significant surge of 13.80% within the past 7 days, reaching $71,926 on May 21.
Bitcoin (BTC) experienced a significant surge of 13.80% within the past 7 days, reaching $71,926 on May 21. This places the cryptocurrency just 2.5% away from its all-time high. The surge in BTC price appears to be driven by two main factors: growing optimism surrounding the approval of a U.S. spot Ethereum exchange-traded fund (ETF) and a general market trend seeking protection against inflation, which has also pushed gold and the S&P 500 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 U.S. Senate overruled the SEC's Bulletin 121 on May 16, which had imposed strict capital requirements on banks holding customer digital assets. The Senate's decision prompted a strategic reassessment at the White House, signaling a shift in the regulatory stance on cryptocurrencies.
SEC Chair Gary Gensler, who had previously shown reluctance towards classifying Ethereum as a non-security or approving its spot ETF, requested updates to the spot Ethereum ETF filings on May 20. At least 5 ETF issuers have submitted their amended 19b filings to the SEC.
Bitcoin derivatives are displaying moderate bullish sentiment, with an increase in demand for BTC long positions through monthly futures. The BTC futures premium has climbed to 14%, the highest in five weeks, indicating a moderately bullish market sentiment. The options market also reflects a healthy sentiment, with a current -8% skew, suggesting a market that is not overly optimistic despite the recent price surge.
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