BlockBeats reported that on Wednesday, May 10, New Hampshire passed a bill allowing the state to create a strategic Bitcoin reserve. A day later, Arizona also passed legislation to support cryptocurrency reserves. As the November election approaches, the momentum at the state level reflects the further attention of political leaders to digital asset policies.
Market jitters have also been eased by recent optimistic comments from President Trump about the upcoming U.S.-China trade talks. These comments echoed the signing of a new trade deal between the United States and the United Kingdom, which will eliminate reciprocal tariffs and reduce tariffs on U.S. goods, further boosting sentiment in both the stock and crypto markets.
Analysts said the recent moves mark a decisive break from the lackluster price action that plagued altcoins in March and April. “Traders believe the crypto sector may have finally found a second life as a hedge against market uncertainty,” Nick Ruck, director of LVRG Research, said in a Telegram chat. “Investors are changing their tune on cryptocurrencies as altcoins have broken out of negative trends and gained buying pressure on renewed risk-on sentiment,” Ruck added.
Ethereum’s 30% rally this week has also been attributed to increased institutional interest and momentum from the Pectra upgrade, which introduces long-awaited execution-layer reforms designed to improve efficiency and scalability. “This upgrade provides Ethereum with much-needed reforms to solidify its position as the leading chain amid growing competition,” said BTSE’s Mei. “Given that Ethereum prices are well below their all-time highs, we could see significant upside in the coming weeks and months, especially if macro concerns ease and institutions become more willing to allocate to cryptocurrencies and crypto ETFs.”
Still, traders are keeping a close eye on this weekend’s U.S.-China trade talks, which are set to begin in Switzerland later on Saturday, and any signs of a stalemate or heightened tensions could undermine the current rally.
