Crypto Market Rally: Why Bitcoin, ETH, XRP and DOGE Are Soaring?

The crypto market has recorded impressive gains in the past 24 hours, with top coins soaring to new heights. Bitcoin has crossed the $70,000 threshold and now vies to reclaim the previous all-time high.

ETH, XRP, SOL, DOGE, and other altcoins followed suit, registering notable gains in the last 24 hours. These ongoing market dynamics reflect a renewed optimism among investors.

Several factors are behind this latest revival, including speculation about Ethereum ETF approval and other factors contributing to the ongoing rally. According to Bloomberg ETF analysts, the chances of approving Spot Ethereum ETF have increased from 75% to 25%. This must have renewed investor optimism, thereby fueling demand.

This bullish sentiment sprouted from the U.S. SEC's request that potential ETH ETF issuers update their 19b-4 filings.According to a report, there are two major deadlines for Spot Ethereum ETF applications.

The first is for VanEck on May 23, and the second for ArkInvest/21Shares on May 24. Several investors are already anticipating the news, some accumulating coins awaiting a potential ETF listing, which could trigger a rally.

Ethereum reacted to these increased speculations, trading at $3,713 with a 20% increase as of 7:04 AM EST.Moreover, Coinbase analysts believe the odds of a possible Ethereum ETF approval are underestimated.

The analysts noted that Ethereum's price could soar to unexpected heights despite the SEC's plans to classify Ethereum as a security.

Again, QCP Capital made a bold prediction for Ethereum, stating that Ether could reach $4,000 in the short term if a spot ETH ETF is approved. Also, QCP Capital believes ETH can reach $5,000 at some point this year if the ETF approval materializes.

This optimism has also influenced other altcoins and the general meme coin market. DOGE has soared over 11% in the last 24 hours and now trades at $0.1685 as it eyes the $0.2 threshold. XRP has surged over 7% and trades at $0.553 as of 11:19 AM EST.

Meanwhile, the U.S. Spot Bitcoin ETFs are still progressing, with more inflows recorded in the last day. According to data from Farside Investors, the Spot Bitcoin ETFs saw a net inflow of $237.2 million as of Monday, May 20.

Ark Invest's ARKB topped the list with $68.3 million in net inflows, while BlackRock's IBIT recorded $66.4 million. Meanwhile, Grayscale's outflows have dropped significantly, with GBTC recording an inflow of $9.3 million as of May 20.

These increased inflows suggest renewed investor interest in Bitcoin, pushing the asset break to $71,132, with a 6.1% increase in 24 hours.

Crypto Bill Gains Support, Contributes to Positive Sentiment

Another factor driving the crypto market rally is notable regulatory updates from the U.S. Blockchain Association. In a letter addressed to Speaker Johnson and Representative Jeffries, the organization supported a floor vote for the Financial Innovation and Technology for the 21st Century Act.

This proposed act aims to introduce a clear regulatory framework to support innovation and protect consumers. Top crypto firms such as Coinbase and Circle have also endorsed the bill, which promises regulatory clarity.

This development shines a ray of hope in the continuous survival of the blockchain and crypto space. It could be among the factors driving the ongoing bullish market sentiment. In light of this, the crypto market cap has soared over 8% in the last 24 hours and now stands at $2.62 trillion.

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