The cryptocurrency market is witnessing a significant resurgence, with various digital coins reaching price levels not seen in months. This has sparked discussions about the potential emergence of a new bull market. Recent market performance indicates that investors are regaining confidence and are increasingly willing to invest in riskier assets, driven by renewed optimism.

Bitcoin has played a pivotal role in this resurgence, initially triggered by rumors about a Bitcoin Exchange-Traded Fund (ETF). BTCUSD surged beyond the $35,000 mark early on a Tuesday, posting a substantial 7% gain for the day. As they say, "buy the rumor, sell the news."

The leading cryptocurrency reached an 18-month high at $35,200 per coin and recorded gains of nearly 20% since the week began.

BTCUSD Chart by TradingView

Other cryptocurrencies also experienced positive momentum during this period.

Altcoins Chart by TradingView

Cryptocurrency-related stocks, such as major U.S. exchange Coinbase Global (COIN) and Bitcoin holder MicroStrategy (MSTR), saw increases in after-hours trading.

The discussion surrounding a potential spot Bitcoin ETF centers on the idea that it would provide a gateway for investors who were previously hesitant about cryptocurrencies to access this asset through traditional stock markets. This could potentially bring a new influx of capital into the crypto sector, granting investors exposure to the world's largest cryptocurrency by market capitalization without the need to directly own it.

However, it's worth noting that the U.S. Securities and Exchange Commission (SEC) had previously denied all spot Bitcoin ETF applications, citing concerns about the applicants' ability to protect investors from market manipulation. Grayscale, a cryptocurrency investment firm, even sued the SEC, contending that the agency had previously approved certain surveillance agreements to prevent fraud in Bitcoin futures-based ETFs, which should also be considered suitable for Grayscale's spot ETF, as both types of funds rely on Bitcoin's price.

Anticipation further increased after reports in the current month that the SEC would not appeal a court ruling, stating that the agency had erred in rejecting an ETF application from the crypto company Grayscale Investments. On Monday, the court formalized its decision, returning the application to the SEC for reconsideration. This legal pressure on the SEC heightens the likelihood of an eventual ETF approval.