Crypto Rally: Top Reasons Why Bitcoin, ETH, XRP, DOGE Prices Are Rising

Rupam Roy
May 21, 2024
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
VanEck Advisor Bitcoin Ethereum Donald Trump US Strategic Crypto Reserve

Highlights

  • Bitcoin & Ethereum lead the ongoing rally in the broader crypto market.
  • Bitcoin price rose over 6%, while the Ethereum price jumped about 20% today.
  • Apart from the Ethereum ETF optimism, several other factors might have triggered the recent bullish sentiment.

The crypto market has witnessed robust gains today, as noted by the significant advancement in the major crypto prices. Notably, most of the major cryptos like Bitcoin, Ethereum, Solana, XRP, Dogecoin, and others have rallied today, reflecting the growing interest of traders in digital currencies. So, let’s take a look at the potential reasons that may have bolstered the investors’ confidence today.

Advertisement
Advertisement

Crypto Market Rallies, Here’s Why

A flurry of reason has helped gains in the digital asset sector, sending the crypto prices to new heights after volatile trading over the past few weeks. Notably, with soaring interest in the Ethereum ETF approval, there are other reasons as well that have sparked optimism among the market participants.

Ethereum ETF Fuels Crypto Market Confidence

The increasing odds of the Spot Ethereum ETF approval by the U.S. SEC have raised market confidence, as evidenced by the soaring price of Ethereum today. Notably, Ethereum (ETH), the world’s second-largest cryptocurrency, surged nearly 20% in the past 24 hours, fueled by growing optimism for the approval of a spot Ethereum ETF. 

Meanwhile, this bullish momentum follows the U.S. SEC’s push for issuers to update their 19b-4 filings, significantly increasing the chances of ETF approval. Senior Bloomberg analysts now estimate a 75% likelihood of approval, up from 25% earlier.

It’s worth noting that the first decision on the VanEck Spot Ethereum ETF is expected by Thursday, May 23, potentially causing further price volatility. However, with soaring optimism, Ethereum’s price climbed above $3,650 for the first time since April 9. 

Notably, this optimism has also positively impacted the broader altcoin market, with significant gains across various digital currencies. Meanwhile, on-chain analytics firm Santiment noted the widespread market cap increase, highlighting the ripple effect of Ethereum’s bullish trend on the entire crypto market.

Also Read: Here’s Why the Ethereum (ETH) Price is Rising Heavily Today

Bullish Predictions

With the soaring Ether ETF approval optimism, several market pundits have provided a bullish outlook for the Ethereum price. For context, QCP Capital has recently said that if the Ethereum ETF receives approval by the U.S. SEC, the ETH price hit $4,000 in the short term, and $5,000 in the ongoing year.

Echoing the bullish sentiment, popular crypto market analyst, Miles Deutscher said that Ethereum could rally to $6,400. Evaluating the performance of Bitcoin following the Spot Bitcoin ETF approval in the U.S., he has predicted that if the same momentum follows, Ethereum is likely to hit $6,446 by July end.

Bitcoin & Ethereum price chart comparison post ETF approval
Source: Miles Deutscher

However, QCP Capital, along with several other market watchers also warned that if the SEC delays in approving the investment instrument, it could cause heightened volatility in the broader market.

Bitcoin ETF Inflow

The U.S. Spot Bitcoin ETF has continued to gain attention from the global market participants with its significant inflows. After noting a positive momentum last week, with inflows totaling around $950, this week also started with a bullish note.

According to Farside Investorsthe overall inflow into the Spot Bitcoin ETFs was $237.2 million on Monday, May 20. Ark Invest’s ARKB topped the list with a $68.3 million influx, with BlackRock’s IBIT recording $66.4 million in fund flows. Notably, the Grayscale’s exodus also seems to be abating, with GBTC recording an inflow of $9.3 million.

Crypto Bill Gaining Support

The crypto market rally today could be also driven by significant regulatory developments in the U.S. The Blockchain Association recently sent a letter to Speaker Johnson and Representative Jeffries, urging legislative support for the Financial Innovation and Technology for the 21st Century Act (FIT21 Act). 

Meanwhile, this proposed act aims to provide a clear regulatory framework, fostering innovation while ensuring consumer protection. The letter, backed by the Crypto Council for Innovation and 60 other entities, highlights the industry’s consensus on the necessity of this legislation. 

In addition, influential firms like Andreessen Horowitz, Coinbaseand Circle, along with key lawmakers, have endorsed the bill. The FIT21 Act seeks to define the jurisdiction of digital assets between the CFTC and SEC, promising safer and more efficient markets. Besides, this regulatory clarity is anticipated to boost investor confidence and drive sustainable growth in the crypto sector.

Advertisement
Advertisement

Bottom Line

The crypto market has witnessed positive momentum since last week, as the investors seem to have regained confidence in the digital asset space. In addition, the recent cooling of U.S. CPI inflation data has also fueled the investors’ sentiment in the broader financial space, let alone the crypto market.

Meanwhile, with soaring bets towards the Ethereum ETF approval and clarity on the crypto regulations, the traders seem to be shifting their focus towards the cryptos. As of writing, the Bitcoin price surged 6.11% over the last 24 hours and traded at $70,918.95, with its one-day trading volume rising 129.96% to $52.87 billion.

Simultaneously, the Ethereum price rose 17.80% to $3,655.47, and the Solana price jumped 2.32% to $181.68. In addition, the XRP price noted gains of 5.67% to $0.5431, while the leading meme coin, Dogecoin price added 8.40% to $0.1643.

According to CoinGlass data, the Bitcoin Futures Open Interest rose 7.48% to 499.91k BTC or $35.52 billion. Simultaneously, the Ethereum Open Interest advanced 25.95% to $14.65 billion from yesterday.

Also Read: Pro-XRP Lawyer Says SEC Knows Ripple ODL Sales Are Not Investment Contracts

Advertisement
coingape google news coingape google news
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Rupam is a seasoned professional with three years of experience in the financial market, where he has developed a reputation as a meticulous research analyst and insightful journalist. He thrives on exploring the dynamic nuances of the financial landscape. Currently serving as a sub-editor at Coingape, Rupam's expertise extends beyond conventional boundaries. His role involves breaking stories, analyzing AI-related developments, providing real-time updates on the crypto market, and presenting insightful economic news. Rupam's career is characterized by a deep passion for unraveling the complexities of finance and delivering impactful stories that resonate with a diverse audience.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.