Ether lead a big rally in the market yesterday, surging 20%, and outperforming BTC.
The surge came on the news of a US-UK trade deal, but ETH also saw a major upgrade to the network.
The “Pectra” upgrade implemented this week has boosted on-chain activity and led to over 38,000 ETH burned or destroyed in the past 24 hours. The burn mechanism introduced by EIP-1559, which burns a portion of transaction fees, can create deflationary pressure, reducing the circulating supply of ETH. Some believe that ETH has become deflationary, and the reduced supply could be very positive for the price.
Are we on the verge of an altcoin season? It’s probably too early to tell, but the BTC dominance rate look like its ending its five-month-long uptrend, which we’ve been waiting for. (Check out this Technical Analysis).
Let’s take a look at this week’s big developments in turn…
🚀Pectra Upgrade
Ethereum’s long-awaited Pectra upgrade went live, introducing sweeping changes to the network. The “most ambitious upgrade yet” introduces features that make crypto wallets and accounts easier to use, such as account abstraction.
Also bundled in the upgrade is EIP-7251, which updates staking rules to lift limits for validators, enabling them to stake up to 2,048 ETH instead of a mere 32 ETH.
Ethereum’s price remained relatively stable post-upgrade, before the pumping 20% on the US-UK trade deal. The market is currently more influenced by macroeconomic factors and competition from other blockchain platforms, such as Solana, which have seen increased developer activity and user adoption .Cointelegraph
The Pectra upgrade lays the groundwork for future enhancements in Ethereum’s roadmap, particularly in areas like scalability and user accessibility. As developers and users begin to leverage these new features, Ethereum is poised to strengthen its position in the decentralized ecosystem and it remains our favourite coin.
🚀 Bitcoin Surges Past $100,000
Bitcoin’s price soared above $102,000 for the first time in three months.
This rally was fueled by positive investor sentiment following news of a new U.S.-U.K. trade agreement and optimism surrounding upcoming U.S.-China trade talks. The surge also boosted crypto-related stocks, with companies like Coinbase and Bitcoin miners experiencing notable gains.
Where next? BTC Back Above $100K for First Time in 3 Months; Are Upside Targets Too Low?
🤝 Coinbase Acquires Deribit for $2.9 Billion
Coinbase announced its largest acquisition to date, agreeing to purchase Deribit, the leading crypto options exchange, for $2.9 billion.
The deal includes $700 million in cash and 11 million shares of Coinbase Class A common stock. This move aims to strengthen Coinbase’s position in the crypto derivatives market, expanding its offerings to include a broader range of trading options.
Coinbase buys Deribit in $2.9 billion deal to expand crypto options base | Reuters
🏛️ U.S. States Embrace Cryptocurrency Reserves
Arizona and New Hampshire have enacted laws permitting state involvement with cryptocurrencies.Axios+1Investor’s Business Daily+1
Arizona: Authorized the state to maintain a reserve of unclaimed cryptocurrency property without investing public funds.Axios
New Hampshire: Permits officials to invest up to 5% of public funds in major cryptocurrencies and precious metals, reflecting the state’s pro-crypto legislative approach. Axios
These developments align with the broader national strategy following President Trump’s executive order establishing a Strategic Bitcoin Reserve, aiming to position the U.S. as a global leader in digital assets. Wikipedia
📜 Regulatory Developments: The GENIUS Act
The U.S. Senate is expected to vote on the GENIUS Act, a bill designed to regulate stablecoins. The legislation aims to provide clear definitions, reserve requirements, and consumer protections for stablecoin issuers, marking a significant step toward comprehensive cryptocurrency regulation. Investor’s Business Daily
📜6 Lessons from Buffett
So the crypto market is picking up a rhythm again, but after the recent downturn, I’m sure there are at least a few coins in your portfolio that are underwater.
At moments like this in crypto it helps to have the advice of a seasoned and expert investor, and who better than Warren Buffett?
In this week’s Mastery video, we looked at 6 lessons that we can learn from Buffett:
✔️Building conviction is the foundation
✔️Staying engaged pays off
✔️Knowledge , Skill compounds over time
✔️In time, this experience will be invaluable
We hope you found it useful.
That’s it for this week.
Things are looking up.
Crypto Traders’ Academy team
