Bitcoin Breaks $100,000 Barrier as Ethereum Explodes Amidst Bullish Catalysts

The cryptocurrency market is ablaze with bullish momentum as Bitcoin has broken through the $100,000 mark for the first time since February, currently trading at $102,929.22 – a surge of 5.02% in the last 24 hours. However, the spotlight is firmly on Ethereum, which has delivered an even more spectacular performance, skyrocketing by 20.25% over the same period to reach $2,203.

The overall cryptocurrency market capitalization has followed suit, climbing to $3.22 trillion, representing a significant 3.66% increase in the past 24 hours, according to Coinmarketcap data.

Several factors appear to be fueling this surge in digital asset prices. While not directly correlated, comments from US President Donald Trump on Thursday regarding potential easing of trade tariffs with China, contingent on successful talks, may have contributed to a broader positive sentiment in risk assets. Trump's statement that existing tariffs "can't get any higher than 145%" and are "coming down" could be interpreted by markets as a potential de-escalation of trade tensions, reducing economic uncertainty.

Ethereum catalysts

Ethereum's explosive growth appears to be driven by more fundamental catalysts. Crypto Times reported a 41% increase in its Total Value Locked (TVL) over the past 30 days, reaching $52.8 billion. This surge in TVL indicates a significant influx of assets into decentralized applications (dApps) and protocols built on the Ethereum network, highlighting its growing utility in decentralized finance (DeFi).

Further bolstering Ethereum's bullish case is a 22% increase in daily transactions, now hitting 1.34 million. This surge in network activity underscores increased user engagement and adoption. The report also points to substantial project growth within key areas like BlackRock's BUIDL fund, Spark Protocol, and Ether.fi, signaling strong institutional and retail interest in leveraging the Ethereum platform for various financial applications.

A significant technical tailwind for Ethereum has been the successful deployment of the Pectra upgrade on May 7, 2025. This upgrade introduces 11 Ethereum Improvement Proposals (EIPs) designed to enhance the network's scalability and user experience. Key EIPs include EIP-7251, which dramatically increases the staking limit for validators from 32 to 2,048 ETH, potentially attracting more participants and securing the network further. Additionally, EIP-7702 enables users to pay transaction fees using stablecoins like USDC or DAI, making the network more accessible and user-friendly. These enhancements have undoubtedly boosted investor confidence in Ethereum's long-term potential.

Adding to the positive momentum, Ethereum's recent rally has also been supported by Bitcoin's break above the psychological $100,000 level yesterday.

Interest rates unchanged

Wednesday's FOMC meeting, where the Federal Reserve decided to keep interest rates unchanged while acknowledging increased economic uncertainty, may also be playing a role. While the Fed's cautious stance initially injected some uncertainty into traditional markets, the crypto market appears to be interpreting the lack of immediate tightening as a positive signal, potentially reducing pressure on risk assets.