The global crypto market is experiencing a pivotal shift as institutional demand accelerates, pushing Bitcoin toward $97,000 and Ethereum to a 60-day high above $1,865. While bullish momentum builds across major digital assets, new regulatory developments in the UK threaten to reshape the DeFi landscape, creating both opportunities and risks for investors navigating this evolving ecosystem.
Ethereum Hits 60-Day High on Institutional Bitcoin ETF Inflows
Ethereum (ETH) has surged past $1,865, marking its highest level in two months. This rally coincides with record inflows into spot Bitcoin ETFs, which have attracted over $4 billion in net purchases over nine consecutive days. Although Ethereum serves distinct use cases from Bitcoin, its price has historically responded positively to macro-level crypto capital flows.
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The surge in Bitcoin ETF demand has reignited investor interest across the broader altcoin market. MicroStrategy’s announcement of additional funding for Bitcoin accumulation further boosted sentiment, reinforcing expectations of sustained institutional participation. As capital floods into Bitcoin-based financial products, traders anticipate a secondary wave of growth for leading layer-one platforms like Ethereum.
Technical indicators support continued upside potential:
- RSI (Relative Momentum Index): At 58.02, showing strengthening momentum without overbought conditions.
- Parabolic SAR: Positioned below price since late April, confirming upward trend integrity.
- Bollinger Band % (BPI): Reading at 140.12, signaling rising volatility and potential breakout conditions.
With ETH holding above the 20-day EMA at $1,754, the path remains open for a test of the $1,920 resistance zone — especially if it clears the 50-day moving average at $1,858.
UK Regulator Targets Crypto-Backed Lending: A Blow to DeFi?
The UK’s Financial Conduct Authority (FCA) has proposed a ban on crypto-backed lending, a move that could significantly impact decentralized finance (DeFi). The draft legislation aims to prohibit platforms from offering loans secured by digital assets, including stablecoins, BTC, and ETH.
This regulatory shift stems from concerns over undercollateralized lending and systemic risks posed by opaque credit protocols. Developed in consultation with the Bank of England and international regulators, the proposal enters a 90-day public feedback period before final parliamentary review in Q3 2025.
Potential Impact on Ethereum’s Market Share
Ethereum dominates DeFi with 52% of total value locked (TVL), amounting to $51.9 billion out of $101.7 billion industry-wide. Major protocols like Aave, Compound, and Lido could see reduced user activity and capital inflows from UK-based participants if the ban takes effect.
Such restrictions may lead liquidity providers and institutional platforms to scale back DeFi exposure, weakening protocol depth and yield sustainability. Reduced lending activity could compress staking rewards and trigger cascading withdrawals — potentially accelerating Ethereum’s ongoing market share decline from its 2021 peak of 71%.
Solana Loses Ground as Capital Rotates Toward Bitcoin and SUI
While Bitcoin and select altcoins gain traction, Solana (SOL) has underperformed, dropping 1.7% on Friday and falling below $150. Over the same period, Bitcoin rose 2.1%, reflecting a clear capital rotation toward market leaders and narrative-driven assets.
SUI emerged as a standout performer, jumping nearly 60% over two weeks following 21Shares’ submission of a spot SUI ETF application to the SEC. This catalyst highlights how regulatory developments can rapidly shift investor focus within the altcoin space.
Despite short-term weakness, SOL maintains technical resilience:
- Price holds above key support at $142 (20-day MA).
- Bollinger Bands suggest consolidation rather than reversal.
- Parabolic SAR remains below current price, indicating sustained uptrend potential.
A decisive close above $150 could retest resistance at $156. Failure to hold $142 may open the door to a drop toward $135.
Bitcoin Nears $97K as Metaplanet Expands into U.S. Market
Bitcoin (BTC) hit a 70-day high of $97,822 amid growing corporate adoption. Japanese firm Metaplanet announced plans to establish **Metaplanet Treasury**, a U.S. subsidiary based in Miami, with an initial $10 million investment aimed at expanding its BTC holdings.
This strategic move enables direct access to U.S. banking infrastructure, OTC desks, and compliant custody solutions. Miami’s pro-crypto regulatory environment makes it an ideal hub for cross-border treasury operations. The expansion underscores a broader trend: global firms are increasingly allocating capital to Bitcoin as a hedge against macroeconomic uncertainty.
BTC has now closed above all major moving averages:
- 50-day SMA: ~$94,600
- 100-day SMA: ~$90,005
- 200-day SMA: ~$90,200
Six consecutive days above the 100-day MA reinforce bullish structure. A breakout above $98,000 could accelerate momentum toward **$110,000**, though a drop below $90,000 would signal potential trend reversal.
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Core Keywords Identified
- Bitcoin ETF inflows
- Ethereum price prediction
- Solana market performance
- DeFi regulation
- institutional crypto demand
- Metaplanet Bitcoin strategy
- crypto market outlook 2025
- UK FCA crypto rules
Frequently Asked Questions (FAQ)
Q: Why is Ethereum rising despite no direct ETF approval?
A: Ethereum benefits indirectly from overall market sentiment driven by Bitcoin ETF inflows and institutional interest. Strong DeFi fundamentals and anticipation of future ETH-based financial products also contribute to price strength.
Q: How will the UK’s proposed lending ban affect global DeFi?
A: While limited to UK jurisdiction, the FCA’s move may inspire similar regulations elsewhere. It could reduce liquidity in major protocols and slow innovation unless compliant frameworks emerge.
Q: Is Bitcoin’s rally sustainable at current levels?
A: Yes, if institutional buying continues and macro conditions remain favorable. Key support near $90,000 provides a strong floor, but regulatory shifts or macro shocks could trigger corrections.
Q: Can Solana recover from recent losses?
A: Short-term technicals suggest recovery is possible if $142 holds. Long-term prospects depend on ecosystem growth, developer activity, and broader market risk appetite.
Q: What does Metaplanet’s U.S. expansion mean for Bitcoin adoption?
A: It signals growing international confidence in U.S.-aligned crypto infrastructure. Such moves normalize corporate Bitcoin holdings and may encourage other Asian firms to follow suit.
Q: What are realistic price targets for Ethereum and Bitcoin?
A: ETH could target $1,920 in the near term; BTC eyes $110,000 if bullish momentum holds. These levels are supported by technical structure and sustained institutional demand.
Final Outlook: Navigating Volatility in a Shifting Landscape
As institutional demand strengthens and corporate treasuries embrace digital assets, Bitcoin and Ethereum remain central to the crypto narrative. However, regulatory pressures — particularly around DeFi — introduce new layers of complexity.
Investors should monitor:
- FCA policy developments in the UK
- Progress on spot ETH ETF approvals
- Corporate BTC accumulation trends
- On-chain activity across major blockchains
While short-term volatility persists, the long-term trajectory points toward deeper integration of blockchain technology into mainstream finance — driven by efficiency, transparency, and growing trust in decentralized systems.
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