Bitcoin & Ethereum Soar on ETF Buzz, Crypto-linked Stocks Jump as Much as 62% Since May
On May 21, Bitcoin (BTC) soared above $70,000, propelled by heavy investment in spot Bitcoin ETFs and an overall market upturn, reaching a high of $71,980 — a 6% rise within a day — then stabilizing at $71,000.
Also, Ethereum (ETH) spearheaded the market surge in the last few hours, soaring an impressive 14.5% in just one hour on Monday, fueled by rumors that the US SEC could greenlight spot Ethereum ETFs. ETH's price jumped from $3,143 to $3,780 at the time of reporting.
Interest in Bitcoin ETFs has rebounded after weeks of outflows, with nearly $1 billion recently invested in these funds, which offer investors exposure to Bitcoin.
This surge has caused significant market liquidations, with over $235 million in positions, including $63 million in Bitcoin shorts, closed in the last day. While some on-chain metrics imply a potential market peak, the overall sentiment suggests a bull market is beginning.
Farside Investors noted a substantial influx of about $950 million last week, a high since March, as Bitcoin has risen 51% year-to-date. This growth is attributed to expectations of US monetary expansion, as the M2 money supply exceeded $21 trillion in April 2024, hinting at rising inflation amid spending caution.
Meanwhile, the Federal Reserve's efforts to manage inflation and avoid a recession could affect liquidity and the attractiveness of assets like Bitcoin.
Source: CryptoSlate, Tradingview
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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