Bitcoin (BTC) continued to hold steady near $109,000 early Wednesday as traders express optimism for new highs in the upcoming months. This sentiment is supported by a notable increase in Ether (ETH), which rose over 3% after renewed confidence in Ethereum’s long-term strategy and a surge in broader institutional activity.
Following the Memorial Day weekend, U.S. equities have surged, particularly the Nasdaq which saw a 2% gain. Investors have seemingly dismissed labor market concerns, drawing optimism from a reduction in trade tensions, which has rekindled risk appetite across various asset classes.
Kay Lu, CEO of HashKey Eco Labs, commented on the evolving landscape: “Institutional investors are increasingly reallocating into crypto after volatility shook traditional safe havens. Ethereum’s new treasury initiative—mirroring MicroStrategy’s BTC approach—shows that crypto is becoming a long-term reserve asset for the web3 ecosystem.”
In a recent development, Ethereum co-founder Joseph Lubin and development lab ConsenSys announced a significant $425 million ETH-based treasury reserve plan with publicly traded SharpLink. This move is likened to corporate strategies centered around Bitcoin.
The company aims to raise approximately $425 million through a private investment in public equity (PIPE) offering, with the proceeds designated for acquiring Ether, which will be positioned as the primary treasury reserve asset. The offering is anticipated to close on May 29th, at which point Lubin will step in as chairman of the board of directors.
Meanwhile, Bitcoin exchange-traded funds (ETFs) have experienced over $385 million in fresh inflows, underscoring continued institutional demand for cryptocurrency assets.
Despite this optimistic momentum, traders are exercising caution ahead of the highly anticipated Bitcoin Conference starting this week in Las Vegas. Key speakers such as JD Vance, Michael Saylor, and members of the Trump family are set to appear, whose past participation has historically incited sharp market reactions.
QCP Capital reported in a market broadcast that “front-end volatility remains elevated with BTC trading in a tight $107K to $110K range.” They highlighted the previous year’s Trump keynote in Nashville, which resulted in a spike in 1-day implied volatility above 90, followed by a significant 30% drop in BTC. This memory continues to shape current market positioning.
QCP also noted that perpetual futures open interest has eased, funding rates have normalized, and certain prominent retail traders, including James Wynn, seem to be reducing their exposure. This defensive posturing indicates that while new highs are anticipated for the summer, traders are preparing for potential short-term volatility linked to political and macroeconomic news.
Analysts, however, maintain a broadly bullish outlook. Augustine Fan, head of insights at SignalPlus, relayed via Telegram, “The structure underneath remains strong. Positive macro headwinds and better underlying structure paint an optimistic outlook with traders expecting prices to grind towards new highs by the summer.”
