Ethereum spearheaded the altcoin rally, driven by renewed optimism about the approval of spot ETH ETFs by the US SEC.
The total cryptocurrency market cap surged to over $2.7 trillion, marking an increase of $200 billion in just 24 hours. This significant rise was driven by notable gains in Bitcoin (BTC) and Ethereum (ETH), along with positive market sentiment fueled by potential regulatory shifts.
Bitcoin (BTC) reached a multi-week peak, hitting $72,000 after several days of trading around $67,000. This increase followed the release of favorable US Consumer Price Index (CPI) numbers and further accelerated during the Monday evening US trading session. Despite a slight pullback, BTC remains above $70,000, with a market cap of $1.4 trillion.
Bitcoin ETF Inflows Continue
The inflow of funds into Bitcoin ETFs has significantly contributed to the market’s positive momentum. According to data from Farside, Bitcoin ETFs saw a substantial inflow of $237.2 million on May 20.
Leading the pack was Ark ARKB with an inflow of $68.3 million, followed closely by BlackRock IBIT and Fidelity FBTC with inflows of $66.4 million and $64.0 million respectively. This inflow represents approximately eight times the daily mined supply of Bitcoin, highlighting strong investor interest.
Ethereum Leads the Altcoin Rally
Ethereum (ETH) spearheaded the altcoin rally, driven by renewed optimism about the approval of spot ETH exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC). The announcement is expected on May 23, but speculations of a possible approval are already influencing the market.
ETH saw a 20% jump at one point, reaching a high of $3,710, its highest price since April 9. Ether futures have also surged in popularity due to the optimistic sentiment surrounding the potential approval of spot ETH ETFs. Data from CoinGlass shows that the notional open interest, representing the total dollar value of active ether futures contracts, climbed 25% to a record $14.05 billion in the past 24 hours. This exceeds the previous high of $13.2 billion recorded in March.
Bloomberg analysts have increased the probability of SEC approval for spot Ether ETFs from 25% to 75%, citing expedited filing processes. This regulatory optimism is further supported by recent cryptocurrency-supportive legislation, enhancing the market’s bullish outlook. The potential approval of spot ETH ETFs has not only boosted Ethereum’s price but also spurred a broader market rally.
Broader Market Gains
Other major cryptocurrencies, including Binance Coin, XRP, Toncoin, Dogecoin, Cardano, Shiba Inu, Polkadot, and Bitcoin Cash, experienced gains of up to 8%. Avalanche was another standout, posting double-digit gains.
Many investors are now anticipating that the bull market conditions will persist, buoyed by the growing optimism surrounding potential regulatory approvals for spot ETH ETFs.
