The cryptocurrency market is experiencing a notable rise following two months of stagnation, with Bitcoin nearing $104,000 during Asian trading hours. This surge is attributed to favorable macroeconomic developments and Ethereum's successful network upgrade.
Significant Gains Among Altcoins
Dogecoin led the altcoin rally with a 10% increase. Ethereum recorded a 3.5% rise after completing the 'Pectra' network upgrade, surpassing a 30% increase on a weekly scale. Solana, Cardano, XRP, and BNB also saw gains ranging from 2% to 6%. Analysts point to growing investor optimism as a key factor driving these increases.
Macroeconomic Developments and Political Announcements
Developments in the U.S. further bolstered the market. A new law in New Hampshire establishing a strategic Bitcoin reserve and similar measures in Arizona indicate that digital asset policies will be key leading up to the elections. Former U.S. President Donald Trump made positive remarks about upcoming trade talks with China, easing market concerns.
Institutional Interest and Technological Advances for Ethereum
Ethereum's weekly rise of over 30% is attributed to the completion of the Pectra network upgrade and increased institutional investment. This upgrade aims to enhance Ethereum's efficiency and scalability. Jeff Mei from BTSE noted that the upgrade provides Ethereum with necessary changes to maintain its leading position. If macroeconomic uncertainties diminish, coupled with greater institutional funding in crypto, ETH could continue its strong ascent.
The resurgence of positive sentiment in the cryptocurrency markets is linked to both macroeconomic developments and groundbreaking steps in Ethereum. Significant gains in major cryptocurrencies have encouraged investors to take risks again. Favorable digital asset policies adopted in the U.S. and certain states are considered factors revitalizing the sector.
