Bitcoin has impressively pushed past the six-figure mark for the first time in over two months, coming within striking distance of $104,000 in the early hours of Saturday in Asia. This milestone comes as the cryptocurrency markets have staged a sharp rebound, buoyed by improving macroeconomic sentiment and Ethereum’s much-anticipated network upgrade, known as the Pectra upgrade.
In addition to Bitcoin’s remarkable ascent, Dogecoin (DOGE) led the gains among altcoins with an impressive 10% rally, while ether (ETH) experienced a healthy rise of 3.5%. The successful implementation of the Pectra upgrade contributed to Ethereum’s weekly gains exceeding 30%. Other major coins, including Solana (SOL), Cardano (ADA), XRP, and BNB Chain’s BNB, also saw price increases between 2-6%, fueled by a notable shift in investor sentiment from caution to a more risk-on approach.
This upturn in cryptocurrency prices follows a slew of pro-crypto developments in the United States. Notably, on Wednesday, New Hampshire passed a bill to establish a strategic Bitcoin reserve, with Arizona quickly following suit a day later. These state-level initiatives signal an increasing commitment from political leaders to solidify digital asset policies ahead of the upcoming November elections.
Moreover, President Donald Trump’s optimistic remarks regarding impending U.S.-China trade talks have served to alleviate market anxieties. His comments coincided with a new trade agreement between the U.S. and the U.K., which will eliminate reciprocal tariffs and reduce duties on American goods, further enhancing positive sentiment across both equities and cryptocurrencies.
“President Trump’s optimistic outlook on this weekend’s China trade talks is easing fears of an escalating trade war, encouraging traders to shift capital back into asset classes like cryptocurrencies,” stated Jeff Mei, COO of BTSE, in a message to CoinDesk. “This could very well drive Bitcoin back towards its all-time high and potentially surpass it.”
As of Saturday morning in Europe, Bitcoin was trading approximately 5% below its January record high of over $108,700, indicating strong momentum as traders remain watchful of developing market conditions.
Analysts believe that the recent developments mark a significant departure from the sluggish price movements that hampered altcoins throughout March and April. “Traders believe the crypto industry may have finally found its second wind as a hedge against market uncertainty,” said Nick Ruck, director at LVRG Research, in a Telegram chat with CoinDesk. “Investors are reevaluating their perspectives on cryptocurrency now that altcoins have escaped a negative trend and discovered buying pressure from a rejuvenated risk-on sentiment.”
The incredible rally of Ethereum, which saw gains of 30% this week, is also attributed to a surge in institutional interest coupled with the momentum generated by the Pectra upgrade. This upgrade introduces essential execution layer reforms aimed at boosting efficiency and scalability.
“The upgrade provides reforms that Ethereum desperately needs in order to cement its position as a leading chain amidst the escalating competition,” Mei added. “Given that Ethereum is trading well below its all-time high, we could anticipate significant upside potential in the weeks and months ahead, particularly as macroeconomic fears diminish and institutions become more inclined to invest in cryptocurrencies and crypto ETFs.”
Nonetheless, traders are closely monitoring the weekend’s U.S.-China trade negotiations, commencing later on Saturday in Switzerland. Any indications of a stalemate or renewed tensions could pose a risk and potentially curtail the current rally.
