Bitcoin (BTC) skilled a big surge of 13.80% inside the previous 7 days, reaching $71,926 on Might 21. This locations the cryptocurrency simply 2.5% away from its all-time excessive. The surge in BTC price seems to be pushed by two principal elements: rising optimism surrounding the approval of a U.S. spot Ethereum exchange-traded fund (ETF) and a common market pattern in search of safety towards inflation, which has additionally pushed gold and the S&P 500 to new all-time highs.

The approval odds for an Ethereum spot ETF had been raised from 25% to 75% by senior Bloomberg ETF analysts on Might 20. This adjustment got here after the U.S. Senate overruled the SEC’s Bulletin 121 on Might 16, which had imposed strict capital necessities on banks holding buyer digital property. The Senate’s resolution prompted a strategic reassessment on the White Home, signaling a shift within the regulatory stance on cryptocurrencies.

SEC Chair Gary Gensler, who had beforehand proven reluctance in direction of classifying Ethereum as a non-security or approving its spot ETF, requested updates to the spot Ethereum ETF filings on Might 20. Not less than 5 ETF issuers have submitted their amended 19b filings to the SEC.

Bitcoin derivatives are displaying average bullish sentiment, with a rise in demand for BTC lengthy positions by way of month-to-month futures. The BTC futures premium has climbed to 14%, the best in 5 weeks, indicating a reasonably bullish market sentiment. The choices market additionally displays a wholesome sentiment, with a present -8% skew, suggesting a market that’s not overly optimistic regardless of the latest price surge.