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Here’s Why Bitcoin, Ethereum, XRP, SHIB, DOGE Are Rising Today

The cryptocurrency market has experienced a surge in recent days, fueled by a confluence of positive factors. This bullish trend comes after weeks of volatility, with major digital currencies like Bitcoin (BTC), Ethereum (ETH), XRP, Dogecoin (DOGE), Shiba Inu (SHIB) and other altcoins experiencing significant price increases. Let’s delve into the key drivers behind this market upswing.

Ethereum ETF Approval in the Spotlight

A primary catalyst for the rally is the rising likelihood of a Spot Ethereum ETF receiving approval from the U.S. Securities and Exchange Commission (SEC). This potential development has instilled confidence in investors, propelling the price of Ethereum (ETH) by over 20% in the last 24 hours.

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This positive sentiment stems from the SEC’s recent actions, including urging issuers to update their 19b-4 filings, which are seen as a necessary step toward ETF approval.

The first decision on the VanEck Spot Ethereum ETF is expected by Thursday, May 23rd. This anticipation is likely to cause further price fluctuations in the market. However, buoyed by optimism, Ethereum surpassed the $3,650 mark for the first time since early April and currently trades at $3,795 according to data from CoinMarketCap.

This bullish trend on Ethereum has had a ripple effect, positively impacting the broader altcoin market. On-chain analytics firm Santiment highlighted this widespread market cap increase, emphasizing how Ethereum’s momentum influences the entire crypto landscape.

Bullish Predictions and Potential Volatility

Market experts have weighed in on the potential implications of an Ethereum ETF approval. QCP Capital predicts a short-term rise in ETH’s price to $4,000, with a possibility of reaching $5,000 within the year if the SEC grants approval.

Echoing this bullish sentiment, crypto analyst Miles Deutscher offers a forecast of Ethereum reaching $6,400. By drawing a parallel with Bitcoin’s price surge after the approval of a Spot Bitcoin ETF in the U.S., Deutscher suggests Ethereum could reach $6,446 by July’s end if a similar momentum unfolds.

However, QCP Capital and other market observers caution that a delay in SEC approval could trigger heightened volatility across the crypto market.

Bitcoin ETF Inflows and Regulatory Developments

The existing U.S. Spot Bitcoin ETF continues to attract global investment, with significant inflows this week. Following a positive trend last week, inflows reached $237.2 million on Monday, May 20th. Ark Invest’s ARKB was a major contributor, leading the list with an influx of $68.3 million.

The regulatory development in the U.S. is also a contributing factor to the current market rally. The Blockchain Association recently urged legislative support for the Financial Innovation and Technology for the 21st Century Act (FIT21 Act).

This proposed act aims to establish a clear regulatory framework for the cryptocurrency industry, fostering innovation while prioritizing consumer protection. The letter garnered support from the Crypto Council for Innovation, 60 other entities, and influential firms like Andreessen Horowitz, Coinbase, and Circle.

The FIT21 Act seeks to define the regulatory jurisdiction of digital assets between the CFTC and SEC, to create safer and more efficient markets. This regulatory clarity is expected to boost investor confidence and contribute to long-term growth within the crypto sector.

Read Also: Massive Inflows into Cardano Just Getting Started –Charles Hoskinson

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Investor Confidence on the Rise

The crypto market has exhibited positive momentum since last week, indicating a renewed sense of confidence among investors in the digital asset space. The recent cooling of U.S. CPI inflation data has also played a role in bolstering investor sentiment across the broader financial market, with cryptocurrencies included.

Over the past 24 hours, Bitcoin and Ethereum have experienced a 5% and 23% surge in price, reaching $70,452.83 and $3,770.51 respectively.


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Solomon Odunayo
Solomon Odunayo
Solomon is a trader, crypto enthusiast, and analyst with over four years of experience in the industry. He strongly believes that crypto assets and the blockchain will continue to gain prominence. At TimesTabloid.com, he focuses on news, articles with deep analysis of blockchain projects, and technical analysis of crypto trading pairs.
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