Bitcoin Above $104k, Ethereum Pectra Upgrade Headline Busy Crypto Week

The cryptocurrency landscape witnessed a flurry of significant developments this past week, ranging from substantial institutional investments and key technological upgrades to evolving regulatory discussions and enforcement actions across the globe. Market leaders Bitcoin and Ethereum both saw notable price movements, while corporations and even nations continue to explore the potential of digital assets for their reserves and financial systems.

Market Highlights and Institutional Moves

The digital asset market experienced considerable activity, with leading cryptocurrencies showing upward trends and institutional players making bold moves.

Bitcoin’s Ascending Trajectory and Corporate Interest

Bitcoin initiated the week of May 5, 2025, trading around $94,000. It then embarked on a steady climb, surpassing the $104,000 mark by May 8 before settling near $103,000. At the time of reporting, Bitcoin is trading at approximately $104,400.

Several key events underscored growing institutional confidence:

• Strategy (formerly MicroStrategy) expanded its holdings by purchasing an additional 1895 BTC for roughly $180.3 million between April 28 and May 4, 2025, at an average price of $95,167. This acquisition was funded through stock sale proceeds.
• Investment firm Bernstein projects that corporations could invest up to $330 billion in Bitcoin by 2029, citing Strategy’s pioneering approach to using Bitcoin as a primary reserve asset as a key catalyst.
• Japanese investment company Metaplanet also bolstered its Bitcoin reserves, acquiring 555 BTC for $53.4 million. This brought Metaplanet’s total holdings to 5555 BTC, valued at $481.5 million, with an average purchase price of $86,672 per BTC. The firm recently announced plans to open a U.S. subsidiary.
• Data from Santiment indicated active accumulation by large Bitcoin holders. Addresses holding between 10 and 10,000 BTC reportedly added 81,338 BTC to their reserves over the past six weeks.
• A significant Bitcoin whale moved 2343 BTC on May 6 after nearly 12 years of inactivity. The assets, originally acquired in July 2013 and March 2014, were transferred with a minimal transaction fee of $9.92.

Ethereum’s Pectra Upgrade and Price Surge

Ethereum began the week at approximately $1,800. Mirroring Bitcoin’s performance, it experienced consistent growth, with its price exceeding $2,492 on May 9. Notably, Ethereum’s price surged by about 20% between May 8 and May 9, reportedly its largest daily increase since May 2021, driven by the Pectra upgrade. Ethereum is currently trading around $2,525.

The Pectra hard fork was successfully deployed on the Ethereum mainnet on May 7. This upgrade, activated at epoch 364032 without technical issues, is considered the most significant since the Merge. Developers had previously encountered some challenges during testing on the Sepolia and Holesky testnets, particularly concerning block finalization.

CryptoQuant analysts noted that Ethereum is currently at its most undervalued level relative to Bitcoin since 2019. While such periods have historically preceded growth phases for the asset, experts caution that any recovery might be more subdued this time due to factors like supply pressure, weak investor demand, and reduced network activity.

Developments in Crypto Reserves and State Adoption

The trend of exploring digital assets for state-level reserves saw mixed developments.

• In Florida, two bills (HB 487 and SB 550) proposing crypto asset investments and the creation of a reserve fund have been indefinitely postponed.
• The United Kingdom currently has no plans to establish a strategic Bitcoin reserve, according to Treasury Economic Secretary Emma Reynolds, who stated that such an approach does not align with the UK market’s specifics.
• Conversely, New Hampshire became the first U.S. state to officially authorize local authorities to invest in cryptocurrencies and precious metals after Governor Kelly Ayotte signed a relevant bill into law.
• Irish MMA fighter Conor McGregor publicly advocated for Ireland to create a strategic Bitcoin reserve, emphasizing crypto’s potential to return monetary control to the populace.

Regulatory Landscape and Political Focus

Cryptocurrency regulation and its intersection with politics remained prominent topics, particularly in the United States.

Focus on President Donald Trump’s Crypto Activities

President Donald Trump is reportedly exploring significant financial gains from cryptocurrency-related events in May 2025. According to CNBC, a “Crypto & AI Innovators Dinner” on May 5, attended by White House advisor on cryptocurrencies and AI David Sacks, had participation costs of $1.5 million per person. Another event, a gala for 220 major holders of the OFFICIAL TRUMP (TRUMP) token, is scheduled for May 22.

These activities have attracted scrutiny. Senator Richard Blumenthal, Chair of the Senate Permanent Subcommittee on Investigations, has initiated a preliminary inquiry into President Trump’s crypto dealings. The investigation focuses on projects linked to the TRUMP memecoin, Trump NFTs, and potential ties with foreign investors, examining possible ethics violations and “pay-to-play” schemes.

Furthermore, Democratic Senators Chris Van Hollen, Elizabeth Warren, Sheldon Whitehouse, and Richard Blumenthal have requested federal officials to investigate potential links between Binance and the Trump family, as reported by Bloomberg. Their letter to Treasury Secretary Scott Bessent and Attorney General Pam Bondi highlights a $2 billion deal involving Binance and MGX, allegedly conducted using the USD1 stablecoin issued by World Liberty Financial, a firm reportedly linked to Trump.

Broader Regulatory Initiatives and Enforcement

• A group of nine Democratic senators voiced opposition to the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) bill, citing concerns about insufficient measures against money laundering and terrorism financing.
• House Republicans introduced a bill aimed at regulating digital assets, seeking to delineate jurisdictional boundaries between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) for clearer market oversight.
• On May 7, the U.S. Office of the Comptroller of the Currency (OCC) issued an interpretive letter clarifying that national banks are permitted to buy, sell, and provide custody services for crypto assets on behalf of their clients, either directly or through third-party sub-custodians.
• Alex Mashinsky, founder of the crypto platform Celsius, was sentenced by a federal court in the Southern District of New York to 12 years in prison for fraud that resulted in investor losses exceeding $5 billion. Prosecutors had sought a 20-year sentence.

Other Notable Industry News

Several other important events occurred within the crypto and blockchain space:

• The Maldives is reportedly planning a $9 billion blockchain hub to attract international investors.
• Cryptocurrency derivatives exchange Deribit announced plans to enter the U.S. market.
• The CEO of Tether unveiled a new company project in the field of Artificial Intelligence.
• Bhutan launched a national crypto-based payment system for tourists.
• A report indicated that losses from hacking attacks in April surpassed $357 million.
• Robinhood is reportedly set to launch a blockchain platform in Europe for trading U.S. stocks.
• The number of investment rounds in the crypto sector reached its lowest point since February 2021 in April.
• Blockchain investigator ZachXBT reported discovering thefts totaling $45 million from Coinbase users’ accounts within a week.
• Former Binance CEO Changpeng “CZ” Zhao has formally requested a pardon from U.S. President Donald Trump.
• Coinbase announced the acquisition of Deribit for $2.9 billion.
• German police confiscated crypto assets valued at €34 million from the eXch exchange.