9th May

You can read last week's “This week in crypto” here.

Bitcoin (BTC) surged past $99,000 this week, reaching $99,621 on 8 May 2025, marking a significant milestone in its 2025 bull run. The rally was fuelled by former President Donald Trump's announcement of a comprehensive trade agreement between the US and the UK, which alleviated investor concerns over escalating trade tensions. This development injected renewed optimism into the markets, with analysts attributing the crypto rally to a revived global risk appetite stemming from the trade deal, which reduced uncertainty around US trade policy and tariffs.

The cryptocurrency's upward momentum also coincided with a 1.5% gain in the S&P 500, indicating broader market optimism. Analysts suggest that Bitcoin's strong performance reflects its growing appeal as a hedge against traditional market fluctuations. Technical indicators point to the possibility of Bitcoin reaching the $100,000 mark in the near term, with higher timeframe support levels signalling a strong continuation of its bullish price pattern.

Despite the bullish sentiment, some analysts caution that Bitcoin's rapid ascent could lead to increased volatility. They advise investors to remain vigilant and consider potential market corrections. Nevertheless, the overall outlook remains positive, with many viewing Bitcoin's performance as a testament to its resilience and growing institutional adoption.

Ethereum successfully implemented its Pectra upgrade on 7 May 2025, marking the blockchain's most significant overhaul since the 2022 Merge. The upgrade introduces 11 Ethereum Improvement Proposals aimed at improving transaction speed and cost efficiency. Notably, it increases the staking cap from 32 to 2,048 ether per validator, streamlining processes for large stakeholders.

Despite these advancements, Ether's price saw only a modest 2.7% increase, trading at $1,822, still well below its 2021 peak of $4,105.90. Analysts attribute this to Ethereum's ongoing challenges with high costs and slower transaction speeds compared to competitors like Solana. Nevertheless, Ethereum remains dominant in supporting smart contracts, with over half of all smart-contract activity and $51.9 trillion in value locked.

The Pectra upgrade is seen as a crucial step toward more significant future improvements but not a catalyst for a near-term price recovery. Industry experts emphasise that while the upgrade enhances the network's capabilities, Ethereum must continue to innovate to maintain its competitive edge in the rapidly evolving blockchain ecosystem. The success of Pectra sets the stage for future developments aimed at addressing scalability and user experience challenges.

President Donald Trump's involvement in cryptocurrency has complicated the progress of the bipartisan stablecoin bill known as the GENIUS Act. His personal and family engagements in various crypto ventures, including launching a meme coin and investing in a new stablecoin, have raised concerns about financial conflicts of interest. These activities have led to increased scrutiny from lawmakers and the public alike.

Nine Senate Democrats have withdrawn their support for the bill, citing the need for stronger anti-money laundering and national security provisions. Senator Elizabeth Warren criticised Trump's actions, highlighting the necessity for significant reforms to the bill. Additionally, Democratic Senator Jeff Merkley introduced the End Crypto Corruption Act to prevent presidents and high-level officials from creating or endorsing digital assets.

The controversy has also sparked investigations into potential violations of ethics rules or federal laws by firms linked to Trump. Connecticut Senators Richard Blumenthal and Chris Murphy have voiced significant concerns regarding a cryptocurrency called $TRUMP, a meme coin launched by President Donald Trump, and have introduced legislation aimed at preventing federal officials from profiting from digital assets.

New Hampshire has become the first US state to establish a cryptocurrency reserve under newly passed legislation HB 302. Signed into law by Governor Kelly Ayotte, the bill allows the state treasurer to allocate up to 5% of public funds into precious metals and digital assets with a market capitalisation exceeding $500 billion, currently including only Bitcoin. The digital assets will be securely stored either through a custody solution or an exchange-traded product.

This move surpasses federal efforts under the Trump administration, which planned a national Bitcoin reserve using only assets already held by the government, without committing to new acquisitions. While crypto supporters have advocated for government reserves as protection against inflation and financial instability, similar initiatives have recently failed in other states such as Montana, Wyoming, North Dakota, Pennsylvania, and Florida.

New Hampshire's establishment of a state Bitcoin reserve signals a growing institutional interest in cryptocurrency as a financial asset. The state's proactive approach may serve as a model for other states considering similar investments, potentially driving broader adoption of digital assets in public finance. As of the announcement, Bitcoin's price remained stable at $94,800, reflecting market confidence in such initiatives.

This week has been pivotal for the crypto industry, with significant developments across major platforms and regulatory landscapes. Bitcoin's approach to the $100,000 mark reflects growing investor confidence amid global trade optimism. Ethereum's Pectra upgrade marks a technological advancement aimed at enhancing the network's scalability and user experience. However, political controversies surrounding President Trump's crypto ventures have introduced new complexities to the regulatory environment. Meanwhile, New Hampshire's establishment of a state Bitcoin reserve signals a growing institutional interest in cryptocurrency as a financial asset.

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