Over the last 24 hours, Bitcoin (BTC) has ascended above the critical $70,000 level. Indeed, the leading cryptocurrency has seen its value surge by more than 5%, according to CoinMarketCap. Yet, with the recent surge, the market is curious as to why BTC has surged to start the week.
A myriad of factors come into play to explain the overall surge that BTC has enjoyed on Monday. Moreover, the overall market has seen positive performances across the board as May heads toward Memorial Day weekend.
Specifically, assets like Solana, Ethereum, and Cardano have enjoyed notable rallies over the last 7 days. But let’s explore if the market is responsible for propelling Bitcoin to its current resurgence.
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BTC Breaks Through $70,000 as Market Surges
At the start of the year, Bitcoin saw the US Securities and Exchange Commission (SEC) approve the issuance of spot exchange-traded funds for the asset. That proved to be a landmark development for the leading cryptocurrency and dominated the discourse around it.
Therefore, a discussion on why Bitcoin (BTC) is up to its current level of $70,000 needs to start with that development. Specifically, the digital asset sector has seen a plethora of high-profile financial institutions disclose exposure to the recently approved Spot Bitcoin ETF.
The newest of these was Morgana Stanely, which unveiled it held $270 million worth of Grayscale’s Bitcoin Trust as of March. That disclosure placed Morgan Stanley alongside JPMorgan, Wells Fargo, UBS, and many more.
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Additionally, Bitcoin has been undergoing interesting data development for its user base. Specifically, Sanitment reported that the number of total holders has declined, which would normally be a bad sign for adoption. However, it has arrived alongside some interesting data notes for BTC.
Indeed, smallholders are liquidating their BTC holdings, showing that small wallets are dumping their coins on larger holders. The data firm notes that this is traditionally a bullish sign for Bitcoin and could be a reason why the value is continuing to increase.
Overall, the market appears to be in the middle of a surge in value. As previously stated, Ethereum crossed the $3,100 mark for the first time in more than 20 days. Additionally, Solana (SOL) is barreling toward the $200 mark, with BTC seemingly leading the way.