BTC Finally Settles New Territory

BTC or bust? Bitcoin's new all-time high this morning shows that the asset is ready to explore new heights after a week of timidly pushing up against ATHs.

After ticking $70,000 on Friday, BTC went on to trade within a 3% range just below its highs throughout the weekend before price exploded early Monday morning as traders positioned themselves to front-run the BTC buy pressure from spot ETFs.

While Bitcoin was quick to reject the new all-time highs that were struck last week, today marks the first time this cycle that BTC has been able to trade higher after cracking all-time highs, a feat that has not been achieved since November 2021!

Broader crypto markets are finding themselves green on the day, but Bitcoin’s pump has undeniably taken the wind out of the sails of altcoins, with BTC dominance increasing by nearly 1% on the day, pushing the ETH/BTC ratio back below its years-long downtrend.

While Bitcoin has open road ahead of it, there are still some questions being floated about the future performance of major assets like Ethereum.

Ethereum’s Dencun upgrade, which goes live Wednesday and promises to reduce fees on L2s by orders of magnitude, could reinvigorate the ratio in the immediate term, but the possibility that the SEC denies spot ETH ETF applications this May still poses a major risk for Ether holders.

Bloomberg Senior ETF Analyst Eric Balchunas has decreased his odds of spot ETH ETF approval to 35%, down from the 70% probability he assigned to the prospects at the start of the year.

Rejection would not only harm the ratio, but would likely have a devastating impact on broader alts by creating the appearance that no asset besides BTC will ever receive a spot ETF and further confirming US regulatory opposition to digital asset ownership.