Crypto Market Rebounds as Bitcoin Approaches $104K, Altcoins Gain Momentum

Crypto investors are shifting their views on the market, with altcoins breaking free from their recent slump and benefiting from a renewed risk-on sentiment, according to analysts.

Bitcoin reached a new high of nearly $104,000, marking its first foray past the six-figure mark in over two months. The surge in crypto prices follows a broader market rebound driven by improved global sentiment and Ethereum’s successful Pectra upgrade.

Dogecoin (DOGE) led the charge, surging 10%, while ether (ETH) climbed 3.5% after the successful implementation of the Pectra upgrade, pushing weekly gains for Ethereum to more than 30%.

Other major cryptocurrencies, including Solana (SOL), Cardano (ADA), XRP, and Binance Coin (BNB), experienced increases between 2% and 6%. These gains reflect a notable shift in investor sentiment, moving from caution to a more risk-on approach.

This optimism follows a series of pro-crypto measures in the U.S. Earlier this week, New Hampshire passed a bill to create a Bitcoin reserve, with Arizona also following suit with legislation supporting a crypto reserve. These developments are part of a broader trend of political leaders pushing for digital asset policy as the November elections approach.

Meanwhile, President Donald Trump’s comments on U.S.-China trade talks helped calm market nerves. The optimistic remarks coincided with a new trade agreement between the U.S. and the U.K., which removed tariffs and reduced duties on American goods, further boosting sentiment in both the equity and crypto markets.

“President Trump’s positive remarks on the upcoming U.S.-China trade talks are alleviating fears of an escalating trade war, prompting traders to return to riskier assets like cryptocurrencies,” said Jeff Mei, COO at BTSE, in a statement to CoinDesk. “This could push Bitcoin towards its all-time high and potentially beyond.”

Bitcoin is currently about 5% below its all-time high of $108,700 set in January.

Analysts view these recent price movements as a significant departure from the sluggish altcoin performance seen in March and April.

“Traders now believe the crypto market may have found its second wind as a hedge against broader market uncertainty,” said Nick Ruck, director at LVRG Research, in a message to CoinDesk.

“With altcoins turning a corner and finding buying pressure from this renewed risk-on sentiment, investors are increasingly confident in the crypto market’s future,” Ruck added.

Ethereum’s impressive 30% rally this week is seen as a result of growing institutional interest and momentum from the Pectra upgrade, which introduces important reforms to improve Ethereum’s scalability and efficiency.

“The Pectra upgrade is a crucial development for Ethereum to solidify its position as a dominant blockchain amid rising competition,” said BTSE’s Mei. “With Ethereum still well below its all-time high, there’s potential for significant upside in the coming weeks, particularly as macroeconomic conditions stabilize and institutions begin increasing their exposure to crypto assets and crypto ETFs.”

Despite the optimism, traders remain cautious as they monitor U.S.-China trade talks, which are set to begin later this weekend. Any signs of a stalemate or increased tensions could dampen the current rally.