Bitcoin Eyes New Summer Highs as Traders Rally; Ether Jumps 3% on Encouraging Treasury News

As a major Bitcoin conference approaches, heightened volatility keeps investors on edge, but optimism for a summer rally builds with Ethereum’s rise and Bitcoin holding steady near $110,000.

Bitcoin (BTC) traded near $109,000 early Wednesday, as traders positioned themselves for potential gains in the months ahead. Meanwhile, Ethereum (ETH) surged over 3%, buoyed by strong institutional interest and renewed confidence in its future prospects.

U.S. equities climbed after the Memorial Day weekend, with the Nasdaq gaining 2%, helped by easing concerns over labor markets and improved trade relations. Stable Treasury yields and fewer shipping disruptions between China and the U.S. reignited appetite for riskier assets.

“Institutional capital is flowing back into crypto amid uncertainty in traditional markets,” said Kay Lu, CEO of HashKey Eco Labs. “Ethereum’s treasury strategy, mirroring MicroStrategy’s approach with Bitcoin, cements its position as a strategic reserve asset for the web3 ecosystem.”

Ethereum co-founder Joseph Lubin, alongside ConsenSys, announced a $425 million ETH treasury initiative at publicly listed SharpLink. This private investment in public equity (PIPE) offering aims to purchase ether to serve as the company’s primary treasury reserve. The deal is set to close May 29, after which Lubin will assume the role of chairman.

Meanwhile, bitcoin ETFs attracted over $385 million in new inflows, signaling strong institutional demand.

Still, cautiousness prevails ahead of the Bitcoin Conference in Las Vegas, with notable figures like JD Vance, Michael Saylor, and members of the Trump family slated to speak. Their appearances have historically stirred significant market movements.

“BTC is trading in a narrow band between $107K and $110K, with volatility expected to persist,” noted QCP Capital of Singapore. “Last year, Trump’s keynote triggered a spike in implied volatility and a 30% drop in BTC, a reminder that politics can swiftly impact prices.”

QCP also reported that futures open interest has declined, funding rates have normalized, and several retail traders are trimming their exposure.

This suggests that while a summer breakout is anticipated, short-term swings tied to political and macroeconomic factors could create turbulence. Nonetheless, analysts remain optimistic.

“The underlying market structure is solid,” said Augustine Fan, head of insights at SignalPlus. “With favorable macro trends and supportive technicals, traders expect Bitcoin to push toward new highs over the summer.”