Bitcoin (CRYPTO: BTC) may be flirting with all-time highs again and this is not déjà vu from November 2024. BTC's surge back then was turbocharged by sentiment and speculation. This time around, the rally is built on sturdier ground. Ethereum (CRYPTO: ETH) isn’t going unnoticed either. The crypto company went up 40% in a week.

While price action is bullish for both tokens, what's driving their momentum today may be structurally different.

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Bitcoin: Slower Climb, Stronger Foundation?

Bitcoin surged from roughly $94,000 in early May 2025 to over $106,000 – up 13%. While that may seem impressive, James Toledano, chief operating officer at Unity Wallet, says the move "echoes" the November 2024 rally, when BTC spiked nearly 37% in a single month.

"Many of the driving forces appear to be the same," says Toledano, pointing to "rapid price increases and strong institutional interest." However, the current rally is supported by more than just sentiment.

"This ascent is fueled by the cooling tariffs, which has helped ease market chaos, increased ETF inflows, and recent corporate acquisitions like Metaplanet's purchase of 1,004 BTC," he says.

Compared to last year's sentiment-driven rally, Toledano sees today's uptrend as "underpinned by tangible institutional adoption and policy support," suggesting it may be more sustainable.

Ethereum Up 40% In A Week

Ethereum's recent 40% surge was catalyzed by a successful network upgrade and improving global macro conditions. But Dom Harz, co-founder of BOB, believes it reflects more profound changes.

"The recent rally in Ethereum's price isn't just about short-term positioning, but rather is a reflection of a deeper shift in the market's understanding of what the future of blockchain infrastructure will look like," says Harz.

He argues the conversation is shifting from siloed chains to hybrid models “that leverage the best of both worlds: security and liquidity on Bitcoin's side, and battle-tested dApps with proven UX on Ethereum's side."

Per Harz, security remains the core requirement for financial infrastructure. As such, Bitcoin "will become the foundation for the next generation of DeFi."

Ethereum's future depends on "alignment," not competition. "This isn't about allegiance," he concludes. "It's about alignment."

While both Bitcoin and Ethereum are soaring, their convergence through institutional adoption and hybrid infrastructure could define the next phase of crypto—and smart money is betting on that.

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