HomeBitcoin NewsWhat is causing the rise in the crypto market today?

What is causing the rise in the crypto market today?

Reasons Behind the Crypto Market’s Surge: Spot Ethereum ETF Approval, Institutional Inflows, and Technical Breakout

The crypto market is experiencing a significant uptrend today, with the total market capitalization rising by 6.66% to reach $2.6 trillion on May 21. This surge in the market is fueled by several factors, including the increasing chances of a spot Ethereum ETF approval, investors returning to crypto investment funds, and a strengthening market setup.

Bitcoin and Ether are leading the gains, with Bitcoin rising by approximately 6.4% and Ether surging by 18.5% in the same period. The speculation of a spot Ether exchange-traded fund (ETF) approval has been driving prices higher, with reports suggesting that the SEC may be changing its stance on the issue due to political pressure. Bloomberg senior ETF analyst Eric Blachunas has increased the odds of a spot Ethereum ETF approval from 25% to 75%, citing the SEC’s shift on this “increasingly political issue.”

In addition, data from CoinShares shows that cryptocurrency investment products saw inflows totaling $932 million in the week ending May 17, with institutional investors increasing their exposure to digital assets. This influx of capital into crypto investment products is a positive sign for the market, indicating growing acceptance and adoption of cryptocurrencies in the traditional financial sector.

From a technical perspective, the crypto market’s gains today are part of a rebound that started at a support confluence comprising the 50-day exponential moving average (EMA) and the upper trendline of a prevailing descending triangle pattern. This bullish setup suggests that the crypto market could rise towards the technical target of $2.72 trillion by June, from the breakout point of $2.23 trillion.

Overall, the positive momentum in the crypto market today is driven by a combination of factors, including the potential approval of a spot Ethereum ETF, increasing institutional capital inflows, and a strengthening market setup. Investors and traders are closely monitoring these developments as they navigate the volatile crypto market.

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