Bitcoin (BTC) bulls are back in charge, with the price reaching a 38-day high of $71,954 on May 21st. This surge can be attributed to two key factors: whispers of a potential Ethereum ETF approval by the US Securities and Exchange Commission (SEC), and a broader shift towards bullishness in the crypto market.
News reports suggesting a possible green light for Ethereum ETFs have undoubtedly fueled the recent Bitcoin rally. Bloomberg analyst Eric Balchunas’ statement on May 20th, raising the odds of an Ethereum ETF approval to 75%, triggered a 9% surge in Bitcoin price within hours. This positive sentiment surrounding Ethereum, Bitcoin’s closest competitor, seems to be spilling over and benefiting Bitcoin as well.
On-Chain Data Reveals Bullish Accumulation
While the Ethereum ETF news is a major driver, on-chain data suggests an underlying trend of bullish accumulation that began even earlier. CryptoQuant‘s Exchange Reserves chart showcases a decline in Bitcoin holdings on exchanges, indicating investors are moving their coins to long-term storage. This decrease in exchange reserves, totaling 27,778 BTC (around $1.96 billion) since May 15th, signifies a decrease in selling pressure and potential for a price breakout.
The recent decline in US inflation, reported by the Bureau of Labor Statistics on May 15th, seems to have played a role in this bullish trend. This dovish CPI data likely instilled confidence in investors, further contributing to the Bitcoin price surge that followed.
Also Read: Ether Futures ETFs: A Gateway to Ethereum Without Owning the Crypto
Bitcoin Price Forecast: A Break Above $75,000?
With exchange reserves continuing to drop and investor sentiment overwhelmingly positive (as suggested by IntoTheBlock’s data showing 98.7% of active Bitcoin holders in profit), the stage is set for another potential price leg-up. Analysts predict a possible breakout above $75,000 in the coming days, especially if the SEC delivers a positive verdict on Ethereum ETFs before the May 23rd/24th deadline.
The Bottom Line: A Positive Outlook for Bitcoin
The confluence of positive factors, including the Ethereum ETF buzz, dovish inflation data, and on-chain signs of accumulation, paint a promising picture for Bitcoin. While the SEC’s decision on Ethereum ETFs remains the major near-term catalyst, the underlying bullish sentiment suggests Bitcoin could be headed for further gains in the near future. Investors should continue to monitor the regulatory landscape and key technical indicators as the situation unfolds.
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