Bitcoin Gains on U.S.-China Trade Hopes, Ethereum Upgrades

Bitcoin Surges on Trade Optimism

Bitcoin climbed 3.5% to $97,211 on Wednesday, fueled by optimism over U.S.-China trade discussions. The cryptocurrency has struggled to break above $100,000 since its April rally stalled. While gains are welcome, Bitcoin remains range-bound, with $100k as the next key milestone.

Strategy's $180 Million Bitcoin Purchase

Michael Saylor's Strategy (NASDAQ:MSTR) bought 1,895 Bitcoin for $180 million, marking its smallest purchase since March. This move signals cautious optimism despite the company's significant unrealized losses in Q1. Strategy continues to lead as the largest corporate Bitcoin holder, with plans to raise $21 billion for further purchases.

Ethereum's Pectra Upgrade Goes Live

Ethereum successfully activated its Pectra upgrade, its largest since the 2022 Merge. The hard fork increases staking limits from 32 to 2,048 ETH, enhancing scalability and efficiency. This upgrade aims to strengthen Ethereum's position amid growing competition and internal discussions about its future.

Broader Crypto Market Sees Gains

Altcoins followed Bitcoin's lead, with Ethereum rising 3.7% to $1,833.37 and XRP gaining 1.9% to $2.13. Solana, Cardano, and Polygon also saw increases, while meme tokens like Dogecoin and $TRUMP surged over 4% and 3%, respectively. However, most cryptocurrencies remain stuck in tight trading ranges, struggling to break out.

The crypto market's sensitivity to broader economic sentiment and geopolitical developments remains a key driver, with U.S.-China trade dynamics and corporate adoption shaping its near-term outlook.