As volatility rises ahead of this week’s major Bitcoin conference, investors are positioning for a potential summer breakout while Ethereum climbs and Bitcoin consolidates near $110,000.
Bitcoin (BTC) held firm around $109,000 early Wednesday as traders anticipate fresh upward momentum in the months ahead. Meanwhile, Ethereum (ETH) surged more than 3%, buoyed by renewed faith in its long-term vision and growing institutional engagement.
U.S. equities jumped following the Memorial Day weekend, with the Nasdaq up 2%, as easing trade tensions and positive signals from the labor market boosted investor confidence. The market rally was further supported by stable Treasury yields and a reduction in shipping delays between China and the U.S., which revived risk appetite across various asset classes.
“Institutional investors are increasingly turning to crypto as traditional safe havens face volatility,” noted Kay Lu, CEO of HashKey Eco Labs. “Ethereum’s new treasury strategy, modeled after MicroStrategy’s bitcoin playbook, reflects crypto’s evolving role as a reserve asset within the web3 ecosystem.”
Ethereum co-founder Joseph Lubin, alongside ConsenSys, announced a $425 million ETH-backed treasury reserve initiative at SharpLink, a publicly traded company. The private investment in public equity (PIPE) raise aims to acquire ether as SharpLink’s core treasury asset. The offering is set to close on May 29, with Lubin stepping in as chairman of the board.
Bitcoin ETFs continue to attract significant institutional interest, with over $385 million in inflows recorded recently, reinforcing steady demand.
However, market participants remain cautious as the Bitcoin Conference kicks off in Las Vegas. Notable speakers include JD Vance, Michael Saylor, and members of the Trump family, whose prior appearances have historically triggered sharp market reactions.
“Short-term volatility remains elevated, with BTC trading tightly between $107K and $110K,” said Singapore-based QCP Capital in a market update. “Last year’s Trump keynote in Nashville caused a surge in implied volatility followed by a 30% BTC drop. That precedent still influences current market positioning.”
QCP also observed that perpetual futures open interest has declined, funding rates have stabilized, and key retail traders such as James Wynn are reducing exposure.
This defensive stance suggests that while a summer rally is anticipated, traders are preparing for possible swings linked to political and macroeconomic events. Nonetheless, sentiment among analysts remains largely optimistic.
“The underlying market structure is solid,” Augustine Fan, head of insights at SignalPlus, told CoinDesk via Telegram. “Favorable macro trends combined with strong technical foundations support an outlook for prices to push toward new highs by summer.”
