Bitcoin has surged past $71,000, driven by increasing optimism that the U.S. Securities and Exchange Commission (SEC) will approve a spot Ether ETF. This marks the first time Bitcoin has reached this level since early April, with Ethereum also experiencing significant gains.
Key Takeaways
- Bitcoin surpasses $71,000 for the first time since early April.
- Ethereum jumps nearly 20% amid growing hopes for a spot Ether ETF approval.
- Market movements lead to over $260 million in short liquidations.
- Meme coins like MOG and PEPE see significant gains.
Bitcoin and Ethereum Price Surge
Bitcoin rose above $71,000 during the European morning, driven by analysts’ increasing optimism about the approval of a spot Ether ETF in the U.S. BTC has climbed nearly 6% in the last 24 hours, while Ethereum (ETH) jumped almost 20% to over $3,700. The CoinDesk 20 Index (CD20), which measures the digital asset market, rose more than 8.5%. The market movements caused more than $260 million in short liquidations, with Ether shorts losing over $115 million and Bitcoin shorts just over $99 million.
Regulatory Developments and Market Sentiment
The surge in Ethereum’s price is largely attributed to favorable regulatory developments. The SEC has asked exchanges to update 19b-4 filings, which propose rule changes, indicating a higher likelihood of spot Ether ETFs being approved. As a result, the Ether implied volatility curve flattened, and traders heavily bought $4,000 calls for late May. A Polymarket contract asking if an Ether ETF would be approved by May 31 jumped from 10 cents to 55 cents, representing a 55% chance of approval.
Impact on Meme Coins
Meme coins on the Ethereum ecosystem, such as MOG and PEPE, also surged due to the increasing likelihood of Ether ETFs being approved. MOG rose nearly 50%, while PEPE climbed over 20%. Meme tokens are often seen as a leveraged way to bet on the growth of their underlying blockchain. According to Viro, a core team member of MOG, the market sees significant room for growth in these tokens.
Analyst Predictions and Market Trends
Bloomberg ETF analysts Eric Balchunas and James Seyffart increased their odds of the SEC approving VanEck’s spot Ether application to 75% from 25%. Nine issuers, including VanEck and ARK Investment Management, have filed with the SEC to list spot Ether ETFs. The SEC will approve or deny the first round of 19b-4s this week, with votes on VanEck and ARK’s filings on Wednesday and Thursday, respectively.
Bitcoin’s recent surge follows its fourth halving event on April 19, which historically leads to price increases. Ethereum also crossed the $4,000 level for the first time in 26 months on March 8, soaring 53% in 2024.
Conclusion
The cryptocurrency market is experiencing significant gains, driven by optimism around regulatory approvals and market trends. Both Bitcoin and Ethereum have seen substantial price increases, with meme coins also benefiting from the positive sentiment. As the SEC’s decision on Ether ETFs approaches, the market remains bullish.
Sources
- Bitcoin Hits $71K as Ether ETF Hopes Build, CoinDesk.
- Cryptocurrency Prices and News: Ethereum Spikes On ETF Approval Chatter | Investor’s Business Daily, Investor’s Business Daily.