As Altcoins Shake Off the Downtrend, Investors' Views on Cryptocurrency Are Rapidly Changing

This Wednesday, New Hampshire passed a bill allowing the state to create a strategic Bitcoin reserve. A day later, Arizona also passed legislation supporting cryptocurrency reserves. As the November elections approach, the momentum at the state level reflects political leaders' increased focus on digital asset policies.

Recent optimistic remarks by President Trump regarding the upcoming US-China trade talks have also eased market anxiety. These comments echo the new trade agreement signed between the US and the UK, which will eliminate reciprocal tariffs and reduce tariffs on US goods, further boosting confidence in the stock and crypto markets.

Analysts say the recent trend marks a decisive break from the sluggish price action that plagued altcoins in March and April. "Traders believe the crypto industry may have finally found its second wind as a hedge against market uncertainty," said Nick Ruck, director of LVRG Research, in a Telegram chat. "Investors are changing their view on cryptocurrencies as altcoins have shaken off negative trends and gained buying pressure due to a renewed risk appetite," Ruck added.

Ethereum's 30% rise this week is also attributed to increased institutional interest and the momentum of the Pectra upgrade, which introduced long-awaited execution layer reforms aimed at improving efficiency and scalability. "This upgrade provides Ethereum with much-needed reforms to solidify its position as a leading chain amid intensifying competition," said Mei from BTSE. "Given that Ethereum's price is well below its all-time high, we may see significant upside potential in the coming weeks and months, especially as macro concerns ease and institutions become more willing to allocate to cryptocurrencies and crypto ETFs."

Nevertheless, traders are closely watching this weekend's US-China trade talks. The negotiations will begin late Saturday in Switzerland, and any signs of deadlock or escalating tensions could undermine the current rally.