Crypto Market Rebounds with Renewed Risk-on Sentiment, Bitcoin Surpasses $104K
Investors are rapidly adjusting their outlook on cryptocurrency as altcoins break free from their previous downtrend and experience renewed buying pressure, driven by a resurgence in risk-on sentiment, analysts said.
Bitcoin surged past $100,000 for the first time in over two months, peaking just below $104,000 during early Asian trading hours on Saturday. The crypto market experienced a sharp rebound, fueled by improved macroeconomic sentiment and Ethereum’s successful network upgrade.
Dogecoin (DOGE) led the charge among major cryptocurrencies, posting a 10% rally, while ether (ETH) climbed 3.5%, boosted by the successful implementation of Ethereum’s long-awaited Pectra upgrade, bringing weekly gains to over 30%.
Other major cryptocurrencies, including Solana (SOL), Cardano (ADA), XRP, and Binance Coin (BNB), saw gains between 2% and 6%. These moves were driven by a shift in investor sentiment from caution to a more risk-on approach.
This momentum follows a series of pro-crypto developments in the U.S. Earlier this week, New Hampshire passed a bill allowing the state to create a Bitcoin reserve, and Arizona followed suit with its own legislation to support a crypto reserve. These state-level actions come as political leaders increasingly embrace digital asset policies ahead of the upcoming November elections in some states.
Additionally, President Donald Trump’s optimistic comments on U.S.-China trade talks helped alleviate market concerns. The optimism coincided with the U.S. and U.K. signing a new trade agreement, which removed tariffs and reduced duties on American goods, lifting sentiment in both equities and crypto markets.
“President Trump’s positive outlook on the U.S.-China trade talks is easing fears of an escalating trade war and encouraging traders to shift capital back into riskier assets like cryptocurrencies,” said Jeff Mei, COO at BTSE, in a statement to CoinDesk. “This could potentially drive Bitcoin back towards its all-time high and beyond.”
Bitcoin is currently trading about 5% below its January record high of over $108,700 as of Saturday morning in Europe.
Analysts point to recent movements as a decisive break from the sluggish price action that plagued altcoins in March and April.
“Traders believe that the crypto industry has found its second wind as a hedge against market uncertainty,” said Nick Ruck, director at LVRG Research, in a Telegram message to CoinDesk.
“Altcoins have shifted from their negative trend and are now experiencing buying pressure driven by a renewed risk-on sentiment,” Ruck added.
Ethereum’s 30% rally this week is also attributed to growing institutional interest and the momentum behind its Pectra upgrade, which introduces long-awaited execution layer reforms aimed at improving scalability and efficiency.
“The Pectra upgrade brings essential reforms that Ethereum needs to solidify its position as a leading blockchain amid growing competition,” Mei of BTSE noted. “Given that Ethereum is still trading well below its all-time high, we could see substantial upside in the coming weeks and months, especially as macroeconomic concerns ease and institutions increase their crypto allocations, including to crypto ETFs.”
However, traders are keeping a close eye on this weekend’s U.S.-China trade negotiations. Talks are set to begin later on Saturday in Switzerland, and any signs of stalled progress or renewed tensions could undermine the current market rally.
