Ether makes a strong comeback

Bitvavo

The crypto market has had a strong week. Bitcoin's price is €94,000, up more than 10% from a week ago. Many altcoins have performed even better. Even Ether, the troubled number two, grabbed the spotlight with a significant increase.

Market update

After a 40% increase in a month, the price of Bitcoin is now above $100,000 for the first time since early February. In dollars, it's only a few percent away from a new all-time high, however in euros that milestone is still further off. Due to the stronger euro, Bitcoin is currently priced at €94,000, which is still about 11% below the record of €106,000.

It's not just Bitcoin that is bouncing back. Numerous altcoins have made a leap upwards in recent days. Ether, the second-largest cryptocurrency, is currently at €2,250, up around 40% from last week. That's remarkable, considering ETH had been underperforming in this bull market until recently.

The chart below shows the total market value of altcoins ranked 11 through 125, sorted by size. On TradingView, this index is called OTHERS, but some analysts also refer to it as 'the altcoin index'.

The altcoin market is lagging slightly behind Bitcoin, but is showing signs of a new uptrend. A higher high (HH) and a rise above the dominant average suggest that more recovery is on the way. While Bitcoin in dollars is already approaching its all-time high, this altcoin index still has to rise 70% to reach its previous peak.

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The state as a Bitcoin investor

Could Bitcoin serve as a strategic reserve? In the US, that idea is suddenly taking serious shape. Not at a federal level, but through a growing number of individual states.

Last week, New Hampshire became the first state to formally allow a portion of its public reserves to be invested in Bitcoin. The law sets a 5% cap, and requires digital assets to have a market cap of at least $500 billion — a threshold currently only met by Bitcoin.

Arizona quickly followed suit, but took a more cautious approach. An earlier proposal to actively buy Bitcoin was voted down this month, with the governor calling it too risky. However, a softer alternative did pass. The state is now allowed to manage unclaimed crypto assets and use any profits to build up its own Bitcoin reserves.

It is notable that New Hampshire and Arizona are not alone. Similar bills are on the table in at least 18 US states. According to estimates by asset manager VanEck, these plans represent a combined potential of $23 billion in Bitcoin investments, the equivalent of around 220,000 BTC.

In the five states where bills were rejected, Bitcoin's price volatility was cited as the main concern. Source: BitcoinReserveMonitor.com

The trend is clear: while Trump's federal government is still stuck on promises, individual states are actively looking for practical ways to embrace Bitcoin; not as a political statement, but as a strategic choice. Bitcoin is no longer just for individuals or companies, but also governments themselves.

This is remarkable considering Bitcoin was originally created as an alternative to government-issued money. Ironically, it is now governments looking to protect their assets from monetary policy risks, by investing in a currency designed to exist outside of that system.

What started as a protest movement may yet end up at the heart of the financial system. First through corporations. Now through states. And soon – who knows – maybe on an even larger scale.

In other news

More and more companies are adding Bitcoin to their balance sheets as a strategic reserve. From Metaplanet and Semler Scientific to the rebranded Strategy, the corporate Bitcoin movement is gaining momentum. Asset Manager Strive is reinventing itself as a Bitcoin-focused company and David Bailey (BTC Inc.) raised $300M for new investment vehicle. Bernstein analysts expect $330 billion in inflows over the coming years. Even Strategy's earnings call attracted more than 150,000 viewers, which is an unprecedented number. Boardrooms are chasing digital gold.
Ether (ETH) stands out in a week of rising prices. Compared to Bitcoin, Ether had its strongest week since May 2024, rising by around 30% in total to around $2,500. This rally is attributed to several factors, including institutional interest, the recent Pectra upgrade, and positive market developments. But there’s another factor in play: thin order books. According to some analysts, it's not demand that's driving the price, but a lack of liquidity. The market is climbing, but it remains on edge.
Memecoins are on the rise again. Tokens like PEPE, FLOKI, and GOAT posted major gains, with PEPE even surpassing Dogecoin in trading volume. The total market cap of this trading category increased by 8% to $71 billion. Analysts are calling it the start of a new altseason, but also warn of the speculative nature of this rally. The potential is high, but so are the risks.
US stablecoin law suddenly in doubt. What seemed like a "slam dunk" to Bitwise CIO Matt Hougan, now looks uncertain. Democrats are pushing back against the GENIUS Act in the Senate, fearing it will be too weak for AML rules and Donald Trump’s personal ties to crypto. That includes Trump’s own stablecoin (launched through World Liberty Financial) which has reportedly invested $2 billion in Binance, further fuelling suspicion. Time is running out: August is the deadline for this bill.
Fintech frim Superstate launches RWA platform 'Opening Bell'. The platform allows public and private companies to issue shares on blockchain networks hinting. Superstate's goal is to modernize capital markets through public networks such as Ethereum and Solana. Interestingly, SEC Commissioner Hester Peirce publicly supported the idea on the same day, hinting at possible regulatory exemptions for such applications. It seems technology and policy may finally be coming together.

Satoshi Radio: The latest episode of Satoshi Radio once again deals with a fiery debate between two groups of bitcoin developers. There is plenty more news to discuss. Like states investing in bitcoin, a bank embracing the lightning network, and stablecoins taking off. And bitcoin which is about to break the $100,000 mark.

This article is for informational purposes only and does not constitute a marketing communication or recommendation. None of the content herein should be considered as investment advice or a substitute for it. Bitvavo makes no guarantees regarding the accuracy or completeness of the provided information. Investments involve risks. There is a possibility of losing your entire invested capital.