Developments Triggering New Record Expectations in Bitcoin

Bitcoin retested the $69,000 level seen in July and is trading above $68,000 at the time of writing. It continues to increase its market dominance, with a value increase of approximately 10% on a weekly basis. What are the factors that have made the week positive since last week’s article where we evaluated the positive expectations of analysts? Let’s evaluate it together.

The increasing appetite of institutional investors plays an important role in this rise. Last week’s capital inflow of $2 billion was recorded as one of the best weeks since March. One of the positive effects was that Bitcoin spot ETFs were allowed in the options markets by the SEC.

If we look at the big picture; Funds offering spot Bitcoin ETF services in America have broken their own record with approximately $65 billion worth of Bitcoin ownership. This corresponds to 5% of Bitcoin’s total market value. All this positive news flow and market movements; It provides discussion of new record expectations for Bitcoin.

While Bitcoin spot ETFs mobilize the market, corporate giant BlackRock’s BUIDL move also attracts attention. First, let’s talk very briefly about the BUIDL fund. BUIDL fund; A fund that BlackRock launched on Ethereum, holding approximately $550 million worth of money on it. The fund, which was launched at the end of March as 100 million dollars, reached this value due to the demand it received.

Just as BlackRock opens the door to the decentralized world to the centralized world, that is, institutional investors, through ETFs; With its BUIDL fund, it brings fund services in traditional financial markets to the decentralized world.

According to Bloomberg’s news; Last week, BlackRock met with major players in cryptocurrency derivative markets such as Binance, Bybit and Deribit to pave the way for users with BUIDL funds to use their funds as collateral and trade in derivative markets. This is important for users with BUIDL funds to use their capital more efficiently, and it is a strategic move for BlackRock to expand the playing field in which it offers its products and services. I wouldn’t be surprised if they start offering various other funds or using different blockchains soon.

It is a kind of tokenization that brings the products of the traditional finance world to the decentralized world. It is actually a very broad title, as the transfer of many different instruments, from real estate to debt securities, on the blockchain falls within the field of tokenization. It is one of the most talked about topics for corporates in recent years and in the coming years. Banking giant DBS in Singapore, one of the crypto-friendly countries, is also one of those who are closely interested in this issue.

He stated that it has released a new product under the name of DBS Token Services and that the bank will offer its existing products and services. Two weeks ago, we evaluated together that payment giant Visa had made a similar move. Considering all these together, the steps taken by large institutions in the crypto world are more clearly seen.

Finally, let’s open a window on Ethereum. Ethereum has not yet performed independently of Bitcoin in terms of price movements. As Bitcoin’s market dominance increases, the weak chart of the ETH/BTC pair is disappointing investors. Although Ethereum maximalists have been expecting a positive divergence here for a long time, the table has not signaled this from a technical perspective.

Vitalik reiterated in an article published on Thursday that they are on the path to scaling Ethereum through layer-2 solutions. On the Layer-2 side: The token reward distribution, or airdrop, of the Scroll project, which we evaluated last week, will be held this week. We will follow distribution details and market movements closely.

Another airdrop with great expectations from now on will be the layer-2 solution Linea. It may not be too soon before Starknet rewards its users with a second airdrop. There will definitely be rewards on the Zksync side, but this is not expected to come before next year. It is also a fact that the fact that a token will not be released to the market in the near future will positively support its price specifically for this project.

In summary, it is necessary to closely follow the steps of corporate players in the crypto world. It matters where capital flows. The interest of giants such as BlackRock and DBS in tokenization and decentralized finance solutions gives hope for the future of the ecosystem. On the Ethereum side, it is true that a new story is needed.