The recent surge in cryptocurrency prices has caused quite a stir in the market. In just 24 hours, nearly $200 million has been wiped out, and Bitcoin alone accounts for $96.94 million of that loss.
In the past day, the crypto market has experienced a remarkable resurgence, with Bitcoin and Ethereum leading the way in a bullish rally. On Tuesday, Bitcoin (BTC) reached a new high of over $71,000, marking its highest value since early April.
Meanwhile, Ethereum has also seen a significant surge, with its price increasing by over 19% to reach $3,700. The total market capitalization of the global cryptocurrency market currently stands at $2.74 trillion, reflecting an 8.23% change in the past 24 hours and a substantial 135.07% change compared to one year ago.
The surge in Bitcoin’s price can be attributed to optimistic analysis from Bloomberg analysts, who have increased the probability of a spot Ether ETF being approved in the U.S. to 75%. This positive sentiment has also had a modest impact on other major altcoins and memecoins, with XRP, Cardano’s ADA, Solana’s SOL, and Dogecoin (DOGE) all experiencing gains ranging from 3% to 6%.
In the past four hours, there have been significant liquidations in both Bitcoin and Ethereum, with BTC liquidations amounting to $2 million and ETH liquidations totaling $4.94 million. Over the past 24 hours, a staggering 76,947 traders have been liquidated, resulting in losses of $325.63 million. The largest single liquidation order occurred on Huobi, where an ETH-USDT order valued at $3.11 million was liquidated.
Binance has been the most active exchange in terms of liquidations, with $126 million in liquidations within 24 hours. This was closely followed by OKX at $110 million, Huobi at $50 million, and Bybit at $23 million.
On the Ethereum front, there is growing hope for the approval of an Ether exchange-traded fund (ETF). The trading price of Ether (ETH) started the day above $3,600, showing a 17% increase. This surge in value is due to positive regulatory developments that have increased the likelihood of an Ether ETF receiving approval in the near future.
Bloomberg analysts Eric Balchunas and James Seyffart have noted that the chances of a spot Ether ETF have significantly increased from their initial estimates. Additionally, the U.S. Securities and Exchange Commission (SEC) has requested Ether ETF exchanges to update their 19b-4 filings before an important deadline this week. This indicates a step forward in the approval process for spot Ether ETFs.
However, despite the progress with the 19b-4 filings, there is still a possibility that the SEC may reject the Ether ETF’s S-1 registration statement, which could delay its approval and the start of trading.
The decision on VanEck’s proposed Ether ETF is expected to be announced on May 23, while Ark’s decision is scheduled for May 24. Market participants see the approval of an Ether ETF as a positive development that could attract significant institutional investment.
After a recent dip, Bitcoin is now on the verge of setting new records. Last week, there were concerns that Bitcoin had entered the pre-halving risk zone, as its price fell by more than 15% to a low of $61,800. However, the market has rebounded, and it is speculated that the London Stock Exchange will begin trading exchange-traded notes (ETNs) for Bitcoin and Ethereum in May, which could further boost the market.
As of now, Bitcoin’s market capitalization is $1.4 trillion, and the spot Bitcoin ETF has already attracted $12 billion in inflows for BTC since its launch in January, with top trading firms and state funds among its investors.
Overall, the recent crypto rally has injected new life into the market and has sparked optimism among investors. The approval of an Ether ETF and the potential for new trading options on major exchanges could further fuel the bull market and attract more institutional investors.
