Why Crypto Market is Up Today? Is This the Start of Fresh Rally?

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The crypto market increased in the past 24 hours to about $2.75 trillion on Tuesday during the Asian session. Ethereum (ETH) remained at the epicenter of the recent crypto rebound, with a 20 percent rise to about $3,699. The ETH/BTC pair spiked over 13 percent in the past 24 hours, thus accelerating crypto cash rotation from Bitcoin.

Moreover, Bitcoin’s dominance has signaled an inevitable reversal in the near term via a bearish divergence on the Relative Strength Index (RSI).

Top Reasons Crypto Edged Higher Today

Spot Ether ETF Approval Frenzy

Update: @JSeyff and I are increasing our odds of spot Ether ETF approval to 75% (up from 25%), hearing chatter this afternoon that SEC could be doing a 180 on this (increasingly political issue), so now everyone scrambling (like us everyone else assumed they'd be denied). See… https://t.co/gcxgYHz3om

— Eric Balchunas (@EricBalchunas) May 20, 2024

The crypto industry has reacted to the news that the United States Securities and Exchange Commission (SEC) could be preparing to approve spot Ether ETFs. From a political standpoint, the Biden administration has dramatically changed its view on crypto after former president Donald Trump attracted significant attention by endorsing the crypto industry ahead of this year’s election.

According to market pundits, the approval of spot Ether ETFs in the United States will signal the adoption of the entire altcoin industry, thus acting as a major bullish trigger.

Short Squeeze Scenario

As Bitcoin and Ethereum prices traded below $60k and $3k respectively in the recent past, most crypto derivatives traders anticipated further correction. However, the ongoing crypto rebound, which resulted in the liquidation of more than $350 million, has turned most short traders into buyers, thus triggering a short squeeze.

Improved Regulatory Scope

Any central bank digital currency that is not open, permissionless, and private-like cash-is nothing more than a big government surveillance tool.

This week, the @HouseGOP will take action to prevent the Fed from ever issuing one by passing our CBDC Anti-Surveillance State Act. pic.twitter.com/d55gwBOAUz

— Tom Emmer (@GOPMajorityWhip) May 20, 2024

The US Congress has accelerated its efforts to regulate the cryptocurrency industry in the recent months ahead of the November elections. In India, the government has been moving towards inevitable cryptocurrency adoption and regulations similar to those in Europe and its MiCA framework.

As a result, more institutional investors are willing to enter the crypto space due to clear regulatory frameworks.

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