On Wednesday this week, May 10th, New Hampshire passed a bill allowing the state to create a strategic Bitcoin reserve. A day later, Arizona also passed legislation supporting a cryptocurrency reserve. As the November election approaches, the momentum at the state level reflects further attention from political leaders to digital asset policies.
Recent optimistic remarks by President Trump about the upcoming US-China trade negotiations have also eased market anxiety. These remarks echo the new trade agreement signed by the United States and the United Kingdom, which will eliminate reciprocal tariffs and lower tariffs on US goods, further boosting confidence in the stock and crypto markets.
Analysts say the recent trend marks a decisive break from the sluggish price behavior that plagued Altcoins in March and April. "Traders believe that the crypto industry may have finally found its second spring as a hedge against market uncertainty," Nick Ruck, director of LVRG Research, stated in a Telegram chat. "Investors are changing their perception of cryptocurrencies as Altcoins have escaped negative trends and gained buying pressure due to a re-emerging risk appetite," Ruck added.
Ethereum's 30% rise this week is also attributed to increased institutional interest and momentum from the Pectra upgrade, which introduces long-awaited execution layer reforms aimed at improving efficiency and scalability. "This upgrade provides Ethereum with much-needed reforms to consolidate its position as the leading chain in an increasingly competitive landscape," said Mei from BTSE. "Given that Ethereum's price is far below its historical peak, we may see significant upside potential in the coming weeks and months, especially as macro concerns ease and institutions become more willing to allocate to cryptocurrencies and crypto ETFs."
Nevertheless, traders are closely watching the US-China trade negotiations this weekend. The talks will begin late Saturday in Switzerland, and any signs of deadlock or escalating tensions could weaken the current upward momentum.
