Bitcoin briefly surged past the $110,000 mark, fueled by investor optimism surrounding renewed trade discussions between the U.S. and China. However, the rally proved short-lived as concrete breakthroughs remained elusive, leading to a swift price retracement.
Ethereum significantly outperformed Bitcoin during this period, climbing 7% from $2,500 to $2,700. This strength was attributed to favorable macroeconomic conditions and increasing institutional interest in decentralized finance (DeFi) applications built on its network.
DeFi tokens mirrored Ethereum’s gains, with Aave (AAVE) and Uniswap (UNI) jumping 17% and 13% respectively. The surge reflects growing investor confidence in the expanding utility and ecosystem surrounding Ethereum.
Despite the positive momentum, market analysts caution that low liquidity and persistent geopolitical uncertainties pose significant risks. Swissblock highlighted the potential for a ‘double top’ formation should Bitcoin fail to convincingly breach the $112,000 resistance level.
Supportive macro factors, including legislative progress on the GENIUS Act and enhanced regulatory clarity for stablecoins, continue to bolster Ethereum’s position as a foundational layer for tokenized assets and DeFi innovation.