Bitcoin Surpasses $100K, Ethereum Upgrade Spurs ETH Rally

Bitcoin Surpasses $100K, Ethereum Upgrade Spurs ETH Rally

Lede: Bitcoin reached an all-time high of $100,000 while Ethereum’s Pectra upgrade led to a 32% surge in ETH prices, coinciding with the Federal Reserve’s decision to hold interest rates steady.

Nut Graph: Ethereum’s upgrade and Bitcoin’s rise reflect strong market trends and institutional confidence. The Federal Reserve’s interest rate policy supports these shifts, indicating increased crypto market momentum.

Bitcoin’s Milestone and Ethereum Upgrade Significance

Bitcoin’s milestone and Ethereum’s successful Pectra upgrade mark significant achievements. Ethereum’s core developers, with support from leading teams, rolled out the upgrade on May 7, 2025, enhancing Ethereum’s scalability and staking capabilities significantly.

Vitalik Buterin, Co-Founder, Ethereum, – “Simplifying the L1 and empowering L2 scaling is crucial for Ethereum’s future scalability and mass adoption.”

The successful Pectra upgrade involves heavy developer participation and community backing, aiming to establish a more scalable network.

Bitcoin Adoption and Institutional Influence

The institutional adoption and Federal Reserve’s decision to hold interest rates steady have encouraged increased Bitcoin buying. Ethereum also benefitted as developers quickly updated applications and infrastructure, anticipating broader landscape utilization due to Pectra.

Impact on Crypto Market

Bitcoin’s new all-time high attracts institutional flows, reflecting broader confidence in digital assets during economic uncertainty. Ethereum’s upgrade boosts Layer 2 adoption, enhancing scalability and staking features, thus fostering renewed interest from investors and developers.

Historical Context and Future Prospects

Ethereum’s previous upgrades, such as Shanghai and Dencun, show similar impacts on prices and DeFi activity. Current ETH and BTC movements highlight ongoing institutional commitments, signifying potential continued growth in crypto liquidity and infrastructure investments.