The cryptocurrency landscape had a breakout week, with altcoins and Ethereum making substantial price rises. Ethereum rose by over 20% within a couple of days, which triggered debates throughout the crypto community on whether it is the initial phase of a bigger rally or simply a relief.
The investors now are questioning whether or not they should hold altcoins or cash out on current profits. A key event influencing market behavior occurred on May 7th, when the U.S. Federal Reserve decided against cutting interest rates. Despite this, traders appeared unfazed by the lack of policy changes.
Others look to wider macroeconomic developments, especially international monetary policies and geopolitical developments. Of particular note is Donald Trump’s tariff agreement with Britain which assuaged concerns about rising world trade tensions.
The most influential move came from the Chinese Central Bank, which lowered its interest rate to a historic low of 1.3%. In addition to that, China also reduced reserve requirements for banks and announced plans for new quantitative easing packages.
Bitcoin nears $100K as Ethereum leads bullish breakout
These moves have encouraged lending and market activity, boosting investor confidence and increasing liquidity in both Asian and global markets. As the Chinese Renminbi strengthens, the U.S. Dollar weakens, supporting growth in digital assets priced in dollars.
Historically, such shifts have supported bullish movements in cryptocurrencies. Bitcoin nearly reached the $100,000 mark while Ethereum surpassed $2,000, signaling a possible new bullish phase.
Some investors think Bitcoin has topped, while others are anticipating a sustained rally due to lower interest rates and institutional acceptance via ETFs. Other altcoins are still in the initial phases of expansion. With stablecoin payments being integrated into firms such as Stripe and Ethereum upgrades being introduced, crypto use is growing rapidly.
