Pepe Coin (PEPE) Surges 40% as Cryptocurrency Markets Rally

In a remarkable turnaround, cryptocurrency markets have surged over the past 48 hours, with Bitcoin (BTC) breaking the $100,000 barrier for the first time

Cryptocurrency markets have surged over the past 48 hours, pushing Bitcoin (BTC) above the $100,000 barrier for the first time since early February 2025. This upward momentum follows a period of consolidation above the critical $91,000 support level, signaling a renewed risk appetite among traders.

Bitcoin's rally is not occurring in isolation, as Ethereum (ETH) has also seen a significant boost, climbing approximately 30% since May 7, 2025. This increase in ETH's value is attributed to a combination of factors.

Recent Pectra upgrade aims to enhance Ethereum’s efficiency and scalability

"It introduces long-awaited improvements that will boost Ethereum’s efficiency and scalability," said Dom Harz, co-founder of BOB.

Coinbase is acquiring Deribit, a leading off-chain venue for crypto options, in a move that will help the U.S. exchange expand its footprint in the derivatives market.

"Global derivatives trading is a key driver of growth for Coinbase. A cash and stock deal is a great bargain for Coinbase shareholders since it helps them expand globally," noted Fractal Bitcoin's Spencer Yang, the former product head for Coinbase Wallet.

This acquisition is significant as it is expected to drive the growth of derivatives trading, which plays a crucial role in the overall cryptocurrency ecosystem.

Traders are exhibiting a bullish sentiment, evidenced by the heavy call spread activity in the market, according to Wintermute analyst Jake O.

This trend indicates that traders are chasing frontend volatility, creating a positive spot-vol correlation through mid-May. However, there is a note of caution as implied volatility (IV) appears to soften beyond June, suggesting that the current rally may not be pursued aggressively in the long term.

"Trader sentiment is overwhelmingly bullish, with 59% of all ETH premiums and 67.3% of BTC premiums being used to buy calls," added Nick Forster, founder of the on-chain options platform Derive.xyz.

In the near future, there are optimistic predictions for a significant increase in the likelihood of ETH settling above $2,500 by the end of May, currently at just 2% and expected to rise to 15%.

Similarly, the chance of BTC exceeding $115,000 is expected to increase from 3% to 13%.

The broader crypto market is also showing signs of life, with ETH making substantial gains against BTC, evidenced by a 25% rally in the ETH/BTC ratio.

Furthermore, the TradingView OTHERS index has risen by 16%, while stablecoin dominance is decreasing, signaling a shift back towards risk assets.

A trade agreement between the U.S. and the UK, announced on May 8, 2025, is being credited with boosting market risk appetite.

Although the deal is largely symbolic, maintaining a 10% tariff on most British imports, it nonetheless contributes to a sense of optimism in the markets.

"The Brits already charge average tariffs of only 1%, so this turn of events is a photo op with little macroeconomic significance," remarked economist Justin Wolfers.

However, Galxe co-founder Charles Wayn highlighted the potential for future concessions.

"With these deals, there is hope for more such concessions, and with more deals and concessions will come more certainty and better market conditions. The bull market may yet revive, and alt season could still be on the horizon."

In the realm of meme coins, Pepe Coin has hit staggering highs with a 40% surge on May 9, 2025, reaching the $0.000014 level. This rally follows a 35% increase on May 8 and is being fueled by technical indicators.

As technical analysis indicates, Pepe Coin has now surpassed the 38.20% Fibonacci retracement level at $0.0000133, with a 24-hour high of $0.000013933, placing it just below the crucial $0.000014 resistance. The next immediate resistance is anticipated at the 50% Fibonacci level, which is located at $0.00001584.

The prevailing falling wedge breakout pattern suggests that a price surge from this point could propel Pepe towards the 78.60% Fibonacci level at $0.000021. A sustained move above the 0.00001466 level could pave the way for a rally to reach the 0.00001584 resistance.

In addition to price movements, Pepe Coin has seen a notable increase in open interest, which has now climbed to $633 million, showcasing the escalating bullish sentiment. The funding rate for Pepe has also