The price of the largest digital asset currently stands at $70,225 per coin, reflecting a significant jump of 6% over the past 24 hours.

This surge in Bitcoin's price has triggered a surge in crypto liquidations, with short positions bearing the brunt of the losses. In the last 24 hours, over $235 million worth of positions have been closed, as per CoinGlass data. Notably, Bitcoin short positions alone accounted for $63 million of these liquidations, contributing to a total of $173 million in cryptocurrency shorts.

The renewed interest in Bitcoin comes as investors flock to the newly approved spot Bitcoin exchange-traded funds (ETFs), injecting close to $1 billion into these funds. The ETFs allow investors to gain exposure to the leading digital asset. This influx of investment coincides with recent reports from the U.S. Bureau of Labor Statistics, indicating that inflation levels in April were lower than anticipated. Investors often turn to assets like Bitcoin when inflation is low, as it implies the possibility of the Federal Reserve cutting interest rates, which are currently at a 23-year high.

Bitcoin's surge has had a ripple effect on other cryptocurrencies, leading to a rise in their prices as well. Meanwhile, traders who had bet on the prices of digital assets falling are witnessing the liquidation of their positions due to these unexpected price surges.

Bitcoin had previously reached an all-time high of $73,737 in March, and it now stands just 5% below that level. The recent rally in Bitcoin's price is largely attributed to the introduction of Bitcoin ETFs, which are traded on traditional stock exchanges and allow investors to purchase shares that track the asset's price.

Additionally, the sudden price spike in Ethereum on Monday has added to the momentum. Analysts are speculating that the Securities and Exchange Commission (SEC) may approve spot Ethereum ETFs this week, further fueling optimism in the cryptocurrency market.

As Bitcoin continues its upward trajectory, investors and traders will closely watch further developments in the market, including the potential approval of Ethereum ETFs, which could add even more momentum to the ongoing cryptocurrency rally.