Due to the resurgence of altcoins, investors' perception of cryptocurrency is quickly changing.

This Wednesday, on May 10th, New Hampshire passed a bill this week, enabling the state to establish a strategic Bitcoin reserve. A day after that, Arizona also passed legislation in support of cryptocurrency reserves. As the November election approaches, the momentum at the state level indicates that political leaders are paying more attention to digital asset policies. Recently, President Trump's optimistic remarks regarding the upcoming US-China trade negotiations have alleviated market anxiety. These remarks are in line with a new trade agreement signed between the US and the UK, which will eliminate reciprocal tariffs and reduce tariffs on US goods, further boosting confidence in the stock and crypto markets. Analysts state that the recent trends suggest a decisive departure from the depressed price action that affected altcoins in March and April. "Traders believe that the crypto industry may have finally found a new impetus as a hedge against market uncertainty," said Nick Ruck, Director of LVRG Research, in a Telegram chat. "Investors are changing their attitudes towards cryptocurrencies. As altcoins have shaken off negative trends and received buying pressure due to the resurgence of risk appetite," Ruck added. Ethereum's 30% increase this week is also attributed to the increased institutional interest and the momentum of the Pectra upgrade. This upgrade introduces a long-awaited layer-2 reform aimed at improving efficiency and scalability. "This upgrade has provided Ethereum with the much-needed reform to strengthen its position as a leading chain in an increasingly competitive environment," said Mei from BTSE. "Given that Ethereum's price is still far below its all-time high, we may see significant upward potential in the coming weeks and months, especially as macro concerns ease and institutions become more willing to allocate to cryptocurrencies and crypto ETFs." However, traders are closely monitoring this weekend's US-China trade negotiations. The negotiations are scheduled to start in Switzerland later on Saturday. Any signs of a deadlock or the escalation of tensions could weaken the current uptrend.