Bitcoin Holds Above $100K as ETH Posts Best Week Since 2021
The cryptocurrency market maintained its bullish momentum through week’s end with Bitcoin holding firmly above the psychological $100,000 threshold while Ethereum surged over 26% in its strongest weekly performance since May 2021, as investors seek assets perceived as relatively insulated from escalating trade tensions between the United States and China, according to CNBC’s latest crypto market update.
Ether’s dramatic 11% single-day price jump on Friday brought its two-day gain to 29%, finally allowing the second-largest cryptocurrency by market capitalization to catch up with Bitcoin’s stellar 2025 performance and attracting renewed attention from institutional investors who had previously remained focused almost exclusively on Bitcoin exposure.
Technological Upgrade Fuels Ethereum’s Rally
Market analysts attribute Ethereum’s explosive growth partially to the successful implementation of its latest network upgrade, dubbed “Pectra,” which enables lower transaction fees, streamlines staking processes, and enhances support for smart wallets. These technical improvements address several long-standing concerns about Ethereum’s scalability and user experience.
“This upgrade represents a significant milestone in Ethereum’s evolution toward a more efficient and accessible ecosystem,” explained Dr. Sarah Chen, blockchain technology researcher at CoinShares. “By substantially reducing gas fees and simplifying staking, Ethereum is positioning itself to better compete with newer, lower-cost blockchains that have been eroding its market share.”
Altcoin Market Follows Ethereum’s Lead
The renewed market confidence has extended beyond the two largest cryptocurrencies, with Solana gaining 17% over two days and numerous other “altcoins” posting double-digit percentage gains. This broader market rally marks a departure from earlier patterns in 2025 when Bitcoin’s dominance reached multi-year highs at the expense of smaller cryptocurrencies.
“Whales have been accumulating on-chain, ETF demand continues to set new records, and investors seek ‘neutral’ assets amid a tariff-shadowed macro environment,” noted cryptocurrency market analyst Jason Deane in comments to CNBC. “Meanwhile, the announcement of a U.S.–UK ‘mini-deal’ and hints of tariff relief with China have reduced overall risk aversion, lifting equities, oil, and, notably, bitcoin.”
Trade Tension Haven
Bitcoin’s perceived role as a potentially neutral asset during geopolitical and economic uncertainty has strengthened its appeal amid the ongoing tariff disputes between the United States and its trading partners. The digital asset’s decentralized nature and fixed supply have increasingly positioned it as what some proponents call “digital gold” during periods of market volatility.
According to FinTech Magazine, cryptocurrency trading volume has grown substantially, with Bitcoin transactions alone reaching $19 trillion in 2024, more than double the previous year’s $8.7 trillion. This increased liquidity has helped reduce market volatility while accommodating larger institutional trades without significant price impact.
Institutional Adoption Accelerates
The spot Bitcoin ETF market has continued to expand since its landmark approval in January 2024, with these regulated investment vehicles attracting over $65 billion in their first year—more than twice initial projections. Major financial institutions including BlackRock, Fidelity, and Grayscale have established dominant positions in this rapidly growing market segment.
“The introduction of spot Bitcoin exchange-traded funds in 2024 has created new pathways for institutional capital to enter cryptocurrency markets, including retirement funds,” explained Geoffrey Kendrick, Head of Digital Assets Research at Standard Chartered Bank, which forecasts Bitcoin reaching $200,000 by year-end 2025.
Corporate Treasury Diversification
Corporate investment in Bitcoin continues its upward trend, with Bernstein analysis projecting total corporate holdings to exceed $50 billion by the end of 2025, more than double the $24 billion held at the end of 2024. Software intelligence company MicroStrategy remains the largest corporate holder with approximately 444,262 Bitcoin worth roughly $45 billion at current prices.
Tesla, Block, and several other public companies have maintained or increased their Bitcoin treasury allocations despite the asset’s price volatility, citing concerns about inflation and currency debasement as primary motivations for their alternative treasury management strategies.
Regulatory Outlook Improves
The Trump administration’s crypto-friendly stance has created a more favorable regulatory environment, with several officials signaling support for the industry’s growth while emphasizing appropriate safeguards. According to Investopedia, this improved regulatory clarity has emboldened financial institutions to submit applications for additional cryptocurrency-based ETFs beyond Bitcoin and Ethereum.
Applications for ETFs based on XRP, Solana, and several other cryptocurrencies are currently under review, with analysts expecting approvals to begin in the third quarter of 2025. These new investment vehicles would further expand institutional access to the broader digital asset ecosystem beyond the current Bitcoin and Ethereum offerings.
Price Targets Raised
The sustained rally has prompted several major investment firms to revise their year-end Bitcoin price targets upward. Analysts at Bitwise now expect Bitcoin to reach $200,000 by the end of 2025, while those at VanEck project $180,000. Standard Chartered Bank, meanwhile, maintains its $200,000 forecast, citing continued ETF inflows and broadening institutional adoption.
While these projections represent significant increases from current levels, they reflect growing confidence in cryptocurrency’s mainstream acceptance and long-term viability as both an investment asset and potential reserve currency for certain organizations. However, analysts caution that historical patterns suggest eventual corrections even during strong bull markets.
