Dogecoin Surges 10%, Bitcoin Nears $104K Amid Renewed ‘Risk-on’ Sentiment

Bitcoin surged past the $100,000 mark for the first time in over two months, briefly reaching nearly $104,000 early Saturday in Asia. This sharp rebound in the crypto market was fueled by improved macroeconomic sentiment and Ethereum's latest network upgrade.

Dogecoin (DOGE) led the altcoin rally with a 10% increase, while ether (ETH) rose 3.5% following the successful Pectra upgrade, accumulating over 30% weekly gains. Other major cryptocurrencies, including Solana (SOL), Cardano (ADA), XRP, and BNB (BNB Chain), saw gains between 2% and 6%, reflecting a shift in investor sentiment from risk-averse to risk-on.

This positive movement follows a series of pro-crypto developments in the U.S. this week. New Hampshire passed a bill enabling the creation of a Bitcoin reserve, followed by Arizona enacting similar legislation. This state-level momentum underscores the increasing focus on digital asset policy by political leaders ahead of the November elections.

President Trump's optimistic comments regarding upcoming U.S.-China trade talks also helped alleviate market concerns. These comments coincided with a new U.S.-U.K. trade agreement eliminating reciprocal tariffs and reducing duties on American goods, boosting sentiment in both equities and crypto markets.

Jeff Mei, COO at BTSE, commented to CoinDesk, "President Trump's positive outlook on this weekend's China trade talks is easing fears of an escalating trade war, encouraging traders to reinvest in asset classes like cryptocurrencies. This could potentially drive Bitcoin back towards, and even beyond, its all-time high."

As of Saturday morning in Europe, BTC traded approximately 5% below its January record high of over $108,700.

Analysts see this recent activity as a significant departure from the sluggish price action that characterized altcoins throughout much of March and April. Nick Ruck, director at LVRG Research, stated in a Telegram chat with CoinDesk, "Traders believe the crypto industry may have found renewed strength as a hedge against market uncertainty. Investors are changing their views on crypto now that altcoins have overcome a negative trend and are experiencing buying pressure from a renewed risk-on sentiment."

Ethereum's 30% rally this week is also attributed to growing institutional interest and the momentum surrounding its Pectra upgrade, which introduces crucial execution layer reforms designed to improve efficiency and scalability.

Mei of BTSE added, "The upgrade provides necessary reforms for Ethereum to solidify its position as a leading blockchain amidst increasing competition. Given that Ethereum is trading below its all-time high, we could see significant upside in the coming weeks and months, particularly as macroeconomic anxieties subside and institutions become more inclined to invest in crypto and crypto ETFs."

However, traders are closely monitoring this weekend's U.S.-China trade negotiations. Talks are scheduled to begin later Saturday in Switzerland, and any signs of impasse or renewed tension could potentially reverse the current market rally.