- Ethereum's price surged by 20% within 24 hours, hitting a two-month high.
- Bloomberg analysts, Balchunas and Seyffart, increased the likelihood of an Ether ETF approval from 25% to 75% due to political pressure on the SEC.
- The ETF news boosted investor confidence, leading to whales accumulating over $300 million worth of ETH in a day.
- An ETF approval could significantly enhance crypto acceptance and drive further price increases.
- Donald Trump's pro-crypto stance as a presidential candidate further adds to the positive outlook, should he win and fulfill his promises.
The cryptocurrency market experienced a significant upheaval between Monday and Tuesday this week, as Bitcoin surged past the $70,000 mark and Ethereum's price soared to its highest level in two months.
Ethereum Takes the Spotlight
The spotlight is primarily on Ethereum, which has outperformed the rest of the top 10 cryptocurrencies. In an almost overnight rally, Ethereum's price jumped from under $3,200 to $3,700. This surge is fueled by growing optimism about the approval of Ether ETFs.
The Catalyst Behind the Climb
On Monday, May 20, Ethereum’s price shot up by around 20% following a tweet from senior ETF analyst Eric Balchunas. In his tweet, Balchunas mentioned that he and fellow ETF analyst James Seyffart had increased the likelihood of an Ether ETF approval from 25% to 75%. This adjustment in odds was attributed to the SEC potentially succumbing to political pressure and re-evaluating its stance on Ether and cryptocurrency in general, considering the upcoming ETF approval.
Balchunas suggested that the SEC might also be encouraging major exchanges like the New York Stock Exchange and Nasdaq to revise their filings to better accommodate the potentially approved ETFs.
Renewed Market Bullishness
The news of increased ETF approval odds has sparked a new wave of bullish sentiment in the market, leading to heightened speculation and a rush for crypto assets. This sentiment was highlighted by a tweet from a user named Ali, who noted that Ethereum whales had purchased over 110,000 ETH in the last 24 hours, worth approximately $341 million.
Bitcoin investor Anthony Pompliano also remarked that the approval of Ether ETFs could be a pivotal moment for the industry, potentially paving the way for more widespread ETF approvals.
“If they approve the Ethereum ETF, they are approving the entire industry. This is the last dam to be broken,” Pompliano said.
Trump’s Stance on Crypto
Meanwhile, Donald Trump, the Republican candidate for the US presidency, has been actively engaging with the crypto community, offering reassurances that could bolster investor confidence in a supportive regulatory environment for cryptocurrency in the US.
The Road Ahead
Overall, the market appears poised for one of the most volatile crypto bull runs between now and 2025, driven by the anticipated approval of market-wide ETFs, a potentially crypto-friendly US regulatory landscape under Trump, and the forthcoming post-halving bull run.
Disclaimer: Voice of Crypto strives to provide accurate and timely information but will not be held responsible for any missing or inaccurate information. Cryptocurrencies are highly volatile financial assets, so conduct thorough research and make informed financial decisions.
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