Bitcoin (BTC) Surges 13.80% in 7 Days, Reaching $71,926 and Nearing Its All-Time High

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

Bitcoin (BTC) price surged another 13.80% over the past 7 days to hit $71,926 on May 21. This puts the cryptocurrency 2.5% away from its all-time high.

Two key factors that may be driving the BTC price surge are growing optimism over the approval of a U.S. spot Ethereum exchange-traded fund (ETF) and a general market trend seeking protection against inflation, which has also pushed gold and the S&P 500 to new all-time highs.

On May 20, senior Bloomberg ETF analysts raised their estimate for the approval odds of an Ethereum spot ETF from 25% to 75%. This adjustment followed the U.S. Senate’s decision to overrule the SEC’s Bulletin 121 on May 16, which had imposed strict capital requirements on banks that hold customer digital assets. The Senate’s action prompted a strategic reassessment at the White House, signaling a shift in the regulatory stance on cryptocurrencies.

SEC Chair Gary Gensler, who had earlier shown reluctance in classifying Ethereum as a non-security or approving its spot ETF, requested updates to the spot Ethereum ETF filings on May 20. At least 5 ETF issuers have submitted their amended 19b filings to the SEC.

Bitcoin derivatives are showing moderate bullish sentiment, with demand for BTC long positions rising through monthly futures. The BTC futures premium has increased to 14%, the highest in five weeks, indicating a moderately bullish market sentiment. The options market also reflects a healthy sentiment, with a current -8% skew, suggesting a market that is not overly optimistic despite the recent price surge.