Bitcoin surges 13.80%, hits $71,926

The approval odds for an Ethereum spot ETF were raised from 25% to 75% by ETF analysts on May 20

Bitcoin experienced a significant surge of 13.80 per cent within the past 7 days, touching $71,926 on May 21. This places the crypto currency just 2.5 per cent away from its all-time high.

The surge in bitcoin price seems to be driven by two main factors: growing optimism surrounding the approval of a U.S. spot Ethereum exchange traded fund and a general market trend seeking protection against inflation, which has also pushed gold and the S&P 500 to new all-time highs.

The approval odds for an Ethereum spot ETF were raised from 25 per cent to 75 per cent by senior Bloomberg ETF analysts on May 20. This adjustment came after the U.S. Senate overruled the Securities and Exchange Commission's Bulletin 121 on May 16, which had imposed strict capital requirements on banks holding customer digital assets.

The Senate's decision prompted a strategic reassessment at the White House, indicating a shift in the regulatory stance on crypto currencies.

Securities and Exchange Commission Chair Gary Gensler, who had earlier shown reluctance towards classifying Ethereum as a non-security or approving its spot exchange traded fund, sought updates to the spot Ethereum ETF filings on May 20. At least 5 ETF issuers have submitted their amended 19b filings to the Securities and Exchange Commission.

Bitcoin derivatives are displaying moderate bullish sentiment, with a rise in demand for bitcoin long positions through monthly futures. The bitcoin futures premium has jumped to 14 per cent, the highest in five weeks, suggesting a moderately bullish market sentiment.

The options market also reflects a healthy sentiment, with a current -8 per cent change, indicating a market that is not overly optimistic despite the recent price surge.