However, technical analysis and market positioning point to a bullish trend. Both cryptocurrencies maintained a strong position above their respective Ichimoku cloud lines. This situation shows that analyst Josh Olszewicz has a bullish outlook that is also echoed on X. Another evidence is that Bitcoin and Ethereum options on derivatives exchange Deribit continue a trend towards bullish options (calls), derivative instruments that profit from price increases, according to data tracked by Amberdata.

The bullish positioning is likely driven by expectations that the SEC will expand demand for cryptocurrencies by approving spot ETH ETFs.

Markus Thielen, founder of 10x Research, said in a note to his clients, “The SEC should approve ETH ETFs listed in the US today. A few hours before the Bitcoin ETF approval, SEC Chairman Gensler tweeted that cryptocurrency investors should evaluate all potential risks before making any investments. Today “There may be a tweet around 9 a.m. that could provide more clarity on whether approval is imminent.” said.

Thielen added that the Grayscale Ethereum Trust’s discount to net asset value has fallen to just 8% from 30% a week ago, implying “there is at least a 90% probability that an ETF will be approved.”

This change follows news earlier in the week that the SEC was requesting updates and corrections from spot ETH ETF applicants, indicating a potential approval.

“If Spot ETH ETFs are approved, it would mark a sharp change in official attitude towards the cryptocurrency industry. It also appears that hostility towards FIT21 is not as strong as we feared,” Noelle Acheson, author of the popular Crypto Is Macro Now newsletter, told CoinDesk. .” said. In his statement, Acheson references the Financial Innovation and Technology Act for the 21st Century.

The US House of Representatives passed legislation on Wednesday that would clearly define whether cryptocurrencies are commodities or securities. Being classified as a security means strict scrutiny by the SEC. Additionally, the legislation is expected to establish the Derivatives Trading Commission (CFTC) as a leading digital assets regulator alongside the Securities and Exchange Commission.

The bill now heads to the Senate, but its future in the Senate is uncertain. Even if the bill passes the Senate, President Joe Biden could still use his veto power.

Shares of Nasdaq-listed chipmaker Nvidia (NVDA) hit a record high in aftermarket hours Wednesday after the company beat analyst estimates by reporting record revenue ($26.04 billion) for the first quarter.

This rise could be a positive signal for cryptocurrencies, including tokens thought to be associated with artificial intelligence (AI) technology. That’s because historically the flow of money into the cryptocurrency market and so-called AI coins has been due in part to outsized gains in NVDA and the tech-heavy Nasdaq index.