Bitcoin (BTC) has hit a six-week price high, driven by Ethereum’s recent bull rally on expectations of the U.S. Securities and Exchange Commission’s (SEC) approval of exchange-traded funds (ETFs) in the coming days.
According to an analysis by the Santiment platform, on May 20, Bitcoin experienced a jump in its price reaching US$71,400 for the first time in six weeks. The analysis looked at the price action of the market’s largest cryptocurrency amid Ethereum’s rally yesterday.
📈The hype surrounding #Ethereum‘s first spot #ETF has been a catalyst for one of #crypto‘s top 5 days of 2024. $ETH, $UNI, $PEPE, $BONK& $LDO are all over +20% in 24 hours. #Bitcoin‘s jump to $71.4K for the 1sttime in 6 weeks is almost an afterthought. https://t.co/M1HK8sT5jw pic.twitter.com/fC9735hQ0e
— Santiment (@santimentfeed) May 21, 2024
Will Approval of an Ethereum ETF Drive a New Bitcoin Price Record? The broader cryptocurrency market has seen a significant increase since May 20, especially following the rapid appreciation of Ethereum. This abrupt move was driven by optimistic updates regarding the possible approval of Ethereum Spot ETFs by the SEC. Bitcoin tested the $71,000 zone amid the recent price surge.
It is worth noting that the approval of ETFs based on Bitcoin in cash increased the value of the cryptocurrency, as well as boosting the growth of the industry. The largest cryptocurrency reached its ATH on March 14 when it traded at $73,737.94. At the time of publication, the price of Bitcoin was quoted at US$70,767.70, up 5.8% in the last 24 hours. Currently, the current price of BTC is 4.38% away from reaching its all-time high.
It is worth remembering that renowned cryptocurrency analyst Ali Martinez recently suggested a potential rise in Bitcoin to the US$77,000 level. “While assessing the future price action of any asset can be challenging, several on-chain metrics can suggest potential prices that investors should pay attention to. One such metric is the MVRV extreme deviation price ranges. Bitcoin recently returned above the +0.5σ price range, which currently sits at $64,600. Historically, such a rise has led $BTC to test the 1.0σ price range, supported by increased demand. That price range is currently around $77,000.”
Bitcoin Could Hit $70,000 Driven by Positive Sentiment and ETF Inflows
Bitcoin’s recent recovery during 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 crucial role in positively influencing the cryptocurrency market, demonstrating institutional investors’ growing confidence in the digital currency.
The prospect of an increase to US$70,000 gains strength with the recent analysis from Santiment, a renowned on-chain analysis company. Santiment’s report points to a significant increase in positive sentiment towards Bitcoin, reflected by the 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 in or trading cryptocurrencies carries a risk of financial loss.
Source: https://portalcripto.com.br/bitcoin-atinge-recorde-de-preco-de-seis-semanas-etf-de-ethereum-impulsionara-novo-ath-do-bitcoin/
