The cryptocurrency market showed signs of revival last week. After a quiet April, the movement that began in May offered investors not only new price levels but also new hopes. Bitcoin exceeding $ 104,000, approaching its peak in February again, and Ethereum showing its strongest rise in the last four years after the Pectra update, created the long-awaited “spring rally” atmosphere in the crypto markets.
Everything started a few weeks ago with Strategy’s $ 180 million Bitcoin purchase. This move, made at an average level of $ 95,167, showed that institutional investors were still playing for the long term. Then came the statements of Fed Chair Jerome Powell. Powell, who said, “A rate cut may be possible this year, but tariffs could distract us from our target,” gave the markets a contradictory but carefully interpreted signal.
Immediately afterwards, Trump’s statement that he supported an 80% tariff on China raised concerns that global trade wars could flare up again. At this point, investors started looking for a safe haven again. Bitcoin is on its way to becoming a stance against political uncertainties, not just price action. The positive signals regarding the trade agreement between the US and the UK and the new talks with China have instilled in investors the feeling that “this time it may be different”. Record inflows into spot Bitcoin ETFs and the $800 million liquidation in short positions have pushed the price up.
Bitcoin first broke through the $99,000 resistance, then climbed to $102,000 and then $104,000. Not only the price but also the sentiment has changed in the market. The RSI indicator entering the overbought zone shows that the momentum is strong, but the possibility of a correction in the short term should not be ignored. The critical resistance zone is currently $106,000. If it is broken, the $109,500 - $112,000 band may begin to be discussed.
Developments on the institutional front are not limited to purchases; important steps are also being taken in the regulatory field. Arizona Governor Katie Hobbs vetoed a bill that would have allowed the state to create a Bitcoin reserve, taking her place among states that are cautious about cryptocurrencies. In Florida, two similar bills have been suspended indefinitely. These developments show that some states still do not find Bitcoin reliable enough.
However, the outlook is not all negative. New Hampshire made a first in cryptocurrency history by deciding to invest up to 5% of public funds solely in digital assets with a market value of over $500 billion. This step shows that institutional interest is also gaining legitimacy at the state level, and according to experts, it could have a supportive effect on prices in the long term.
On the Ethereum front, the story is more technical but equally impressive. The Pectra update not only increased staking efficiency; it also facilitated the integration of Layer 2 solutions, simplified validator processes and greatly improved the user experience. Following these developments, the Ethereum price rose by over 30% to $2510.
This is not just a price movement, it was recorded as the biggest daily increase since 2021. Another factor supporting this rally was the fact that Ethereum remained cheap compared to Bitcoin due to the weakening of the ETH/BTC parity. On the technical side, $2526 is an important threshold. If it is exceeded, $2817 and then $3000 can be targeted. The most critical development for the future of Ethereum will be whether the SEC will approve the staking feature in possible spot Ethereum ETFs. A positive signal in this direction could be a serious catalyst for Ethereum to push above $3000 and institutional investors to turn to ETH again.
Macro wind, technical breakouts and on-chain data are currently drawing a positive picture. Bitcoin's persistence above $100,000 and Ethereum's safe passage of the $2000 threshold indicate that not only a technical but also a psychological barrier has been crossed. However, it should not be forgotten! Factors such as customs duties, interest rate expectations and ETF developments are quite dynamic. Therefore, news flows that determine the rules of the game as well as the direction of the market should be followed carefully.
The information, comments and recommendations contained herein are not within the scope of investment consultancy. Investment consultancy services are provided within the framework of the investment consultancy agreement to be signed between brokerage firms, portfolio management companies, banks that do not accept deposits and customers. The comments in this article are only my personal comments and these comments may not be appropriate for your financial situation and risk return. For this reason, investments should not be made based on the information and comments in my articles.
