Cryptocurrencies Surge in Tandem!

In recent days, cryptocurrency prices have surged dramatically. Among them, Ethereum (ETH) has shown the strongest performance, with a 72-hour increase of over 40%, reaching a peak price of nearly $2,600. In addition to Ethereum, other major cryptocurrencies such as Bitcoin, XRP, BNB, Solana, Dogecoin, and Cardano have also posted significant gains.

Analysts have pointed out that the recent collective rise in cryptocurrency prices is related to the easing of trade tensions. Ethereum's leadership in this surge is attributed to its ongoing technical upgrades.

Ethereum's 40%+ Surge in Three Days

Over the past three days, Ethereum has experienced a significant price movement, with its value soaring from $1,811 to $2,597.68, a peak increase of 43%, significantly outperforming other major digital currency assets such as Bitcoin.

As of the time of reporting, Ethereum's price was fluctuating around $2,540, with a 7-day cumulative increase of 39.62%. Bitcoin was trading around $104,000, with a 7-day cumulative increase of 8.52%. Over the past seven days, Solana saw a cumulative increase of over 21%, BNB rose by more than 10%, Cardano by more than 15%, and Dogecoin by more than 37%.

These figures indicate that Ethereum has led the broad rebound in cryptocurrencies. Amid the easing of global trade tensions and optimism about network upgrades, Ethereum is on track to post its largest weekly gain since 2021.

Ethereum's rebound also reflects investors' renewed focus on the ongoing technical upgrades of the cryptocurrency. On May 7, Ethereum successfully implemented the Pectra upgrade, introducing a series of key technical improvements. This upgrade included important enhancements such as a higher staking cap and account abstraction (EIP-7702 standard), significantly improving the usability and flexibility of the Ethereum network. The technology also has the potential to reduce network fees. This technical upgrade not only brought substantial functional improvements but also injected new confidence into investors, becoming an important technical foundation for the current rally. These moves by Ethereum are also seen as necessary to counter competition from fast-growing rivals such as Solana.

Additionally, a "short squeeze" has propelled Ethereum's rebound. Since May 8, the Ethereum futures market has witnessed a typical short squeeze. Data shows that since May 8, there has been a large-scale liquidation of short positions in the Ethereum futures market, with a liquidation amount of $438 million, far exceeding the long position liquidation amount of $211 million during the same period. The sharp price increase forced short traders to buy Ethereum to cover their positions, further driving up the price and creating a typical "short squeeze" upward spiral.

Meanwhile, the total value of open Ethereum futures contracts surged from $2.128 billion on May 8 to $2.677 billion on May 10. The weekly funding rate for Ethereum perpetual futures also rose from 0.10% to 0.15%. These two indicators together suggest that more traders are entering the market and opening new positions, and long traders are willing to pay extra to maintain their positions, further confirming the bullish sentiment among Ethereum futures traders.

Trade Tensions Ease

From a macro perspective, the easing of global trade tensions is a significant reason for the recent strength in cryptocurrency prices. According to CCTV News, on May 8, the United States and the United Kingdom reached a new trade agreement, partially withdrawing tariffs in specific areas and further expanding market access for each other's products. Additionally, on the morning of May 10, high-level economic talks between China and the United States began in Geneva, Switzerland.

These developments have significantly boosted market risk appetite and created a positive environment for the cryptocurrency market, including Bitcoin and Ethereum. On May 8, Bitcoin broke through the $100,000 mark for the first time since February of this year. Analysts say this reflects a resurgence in overall demand for risk assets. Meanwhile, U.S. stocks have also continued to rebound from their April lows, with a marked increase in market risk appetite.

Trenchev, co-founder of cryptocurrency trading platform Nexo, said, "Bitcoin's move on Thursday, not only marked its return to the $100,000 mark for the first time in three months, but also reaffirmed its status as the 'ultimate rebound asset,' reflecting the positive impact of improved U.S. trade prospects on market sentiment." Trenchev also noted, "Bitcoin is supported by the Trump administration's crypto-friendly stance, and spot ETF investors continue to buy in." He added that recent market uncertainties have actually propelled Bitcoin's rise, as investors begin to question the safe-haven status of the U.S. dollar, which could continue to support Bitcoin's trajectory.

Thomas Perfumo, global economist at cryptocurrency exchange Kraken, pointed out, "Bitcoin's return to the six-figure mark coincides with a recovery in global market risk sentiment. Stock markets are performing strongly, and investors' willingness to allocate to risk assets is increasing, and this 'animal spirit' of recovery has quickly spread to the cryptocurrency space."

Coinbase Acquires Deribit for $2.9 Billion

Another major event in the crypto world recently is Coinbase's $2.9 billion acquisition of Deribit, the world's largest digital currency derivatives exchange.

According to a foreign media report on Thursday, U.S. cryptocurrency exchange Coinbase has agreed to acquire Deribit, the world's largest crypto derivatives exchange, for $2.9 billion, marking the largest merger and acquisition in digital markets to date. The deal structure shows that Coinbase will pay $700 million in cash, with the remainder paid in stock. Coinbase said the acquisition will accelerate the company's global derivatives strategy.

This acquisition marks Coinbase's most ambitious move into the lucrative cryptocurrency derivatives market. Deribit's total trading volume almost doubled last year, reaching nearly $1.2 trillion. Cantor Analyst Brett Knoblauch said, "This is the largest crypto M&A deal in history, and we believe it is an A+ acquisition for Coinbase."