Crypto Market Rally: Ether Breaks $3.8K, Bitcoin Hits $71K

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Crypto Market Rally: Ether Breaks Past $3.8K, Bitcoin Hits $71K

Written by Aaron S.,

Editor-In-Chief

Last Updated: May 21, 2024

Key Takeaways

Ether has surged over 21%, breaking the $3,800 mark, while Bitcoin has surpassed $71,000;
The overall cryptocurrency market capitalization has increased by more than 8% in the past day, driven by speculation about potential SEC approval of spot Ether ETFs;
The SEC's complicated stance on Ether, particularly concerning its potential classification as a security, affects the approval process for spot Ether ETFs.

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Crypto Market Rally: Ether Breaks Past $3.8K, Bitcoin Hits $71K

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The crypto market is in the middle of a remarkable surge.

Ether (ETH) soared over 21% in the past 24 hours to break the $3,800 mark. Meanwhile, Bitcoin (BTC) has climbed past $71,000.

This rally has propelled the total market capitalization to increase by over 8% in the past day.

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The market's upward trajectory appears to be driven by speculation surrounding the potential approval of spot Ether exchange-traded funds (ETFs) in the United States. The Securities and Exchange Commission (SEC) has requested firms seeking to launch their ETH ETFs to update their filings, suggesting that the regulator may be considering approving these products.

Issuers of spot Ether ETFs must obtain approval for their S-1 filings before trading can start, yet, there is no specific deadline for when this approval will be granted.

The SEC's stance on Ether has become more complicated since Ethereum's move to a Proof-of-Stake (PoS) protocol. SEC Chair Gary Gensler has suggested that cryptocurrencies with staking features might fall under the category of securities, which could provide grounds for the SEC to deny the spot Ether ETF applications.

As for Bitcoin, its recent breakthrough beyond $65,000 earlier this week ended its period of stagnation following its halving event, which reduced miners' rewards by half.

This bullish momentum has spread across other major cryptocurrencies as well. Binance Coin (BNB) has risen by nearly 8%, XRP by over 6%, and Dogecoin (DOGE) by nearly 12% in the past 24 hours.

Overall, the crypto market is experiencing significant gains, driven by speculation on regulatory approvals and surges in major crypto like Ether and Bitcoin, indicating strong investor confidence and potential for continued growth in the sector.

In other news, a researcher at the Ethereum Foundation has become a paid advisor for EigenFoundation, raising community concerns over conflicting incentives.