Bitcoin (BTC) might be out of its slump after gaining 2.78% over the last 24 hours, but it has yet to climb back to $70,000 after falling a few days ago.

The token is sitting at $68,981 (BTC/USD) right now, having climbed out from a low of $66,861. Just because it has surged by nearly 3%, that does not mean it is starting another bullish trend.

We saw the coin go bullish at the start of the week, gaining important ground and reaching as high as $71,239. However, that did not last for long, and Bitcoin was carried down below the $70K level very quickly, dashing hopes for a new record and the goal of $80K this month.

What is it that has Bitcoin staying low when it should have gone on to establish a new and higher support level and broken its own record?

The Damage of Inflation

More than anything, inflation is hurting Bitcoin. News from the FOMC meeting this week as well as from retail sales and the Consumer Price Index all show that inflation is higher than anticipated and not retreating as expected. In fact, inflation in the United States has proven to be incredibly stubborn.

Bitcoin would actually be much lower if it were not for the buoying effect of the spot ETF rumors. Those rumors say that the Securities and Exchange Commission will be approving sot ETFs in the very near future. That has helped Ethereum and some other cryptos stay high right now.

The rumor has not pushed Bitcoin back above $70,000, but BTC could be a lot lower right now. It has this strong rumor to thank for its wavering performance.

For now, Bitcoin has regained some of its recent losses and could be ready to climb higher. If ETFs are approved by the SEC, then that could easily propel Bitcoin past $70K very quickly.