Key Takeaways
- Cryptocurrency markets showed initial recovery signs, influenced by easing trade tensions, but faced setbacks due to significant Bitcoin ETF outflows and uncertainty post-US-China trade talks.
- Industry leaders like Michael Saylor predict substantial Bitcoin growth, targeting $150,000 by the end of 2025, citing regulatory shifts and institutional adoption.
- Tokenization of real-world assets (RWAs) is projected to reach $2 trillion by 2028, a rapid expansion driven by DeFi’s growing efficiency and adoption.
- The impact of major asset managers like BlackRock on ETF performance is highlighted, with its Bitcoin ETF significantly driving inflows, suggesting its involvement is crucial for altcoin ETFs.
- New ETF launches, particularly for Solana, are expected to attract billions in new capital, potentially boosting altcoin markets considerably.
Market Reacts to Trade Tensions and Fed Decisions
The cryptocurrency market began the week with a notable recovery, buoyed by signs of a potential resolution to ongoing trade disputes. This optimism followed a substantial $19 billion market downturn earlier in the month, as demand for digital assets saw an uptick, anticipating a truce in tariff wars.
Investor focus was primarily fixed on the high-stakes meeting between US President Donald Trump and China’s President Xi Jinping, an encounter aimed at solidifying a trade deal and preventing further import tariffs.
However, this positive momentum experienced an abrupt reversal on Wednesday. Bitcoin Exchange-Traded Funds (ETFs) recorded outflows totaling $470 million, a development that occurred despite the US Federal Reserve’s decision to implement a 25 basis point interest rate cut.
Further fueling investor apprehension, the trade discussions between the two presidents concluded on Thursday without any significant announcements regarding import tariffs. This lack of resolution contributed to increased uncertainty across global and digital asset markets.
Michael Saylor Forecasts Significant Bitcoin Surge
Michael Saylor, co-founder of MicroStrategy and a prominent figure in Bitcoin holdings, has projected that Bitcoin could reach $150,000 by the end of 2025. He characterized the preceding twelve months as potentially the most transformative in the industry’s history.
Saylor attributed his optimism to several key developments, including the US Securities and Exchange Commission’s increasing acceptance of tokenized securities, the US Treasury Secretary’s endorsement of stablecoins to maintain dollar dominance, and a broader regulatory pivot in the United States.
“Our expectation right now is that by the end of the year, it should be about $150,000, and that’s the consensus of the equity analysts who cover our company and the Bitcoin industry,” Saylor stated.
This bullish forecast emerged despite a recent market downturn, which was significantly influenced by President Trump’s announcement of 100% additional tariffs on China, raising concerns about macroeconomic instability.
Standard Chartered Predicts Massive Growth in Tokenized RWAs
Investment bank Standard Chartered has forecasted that tokenized real-world assets (RWAs) could reach a cumulative value of $2 trillion within the next three years. This growth is anticipated as global capital and payment flows increasingly migrate to more efficient blockchain infrastructures.
In a recent report, the bank indicated that the decentralized finance (DeFi) sector’s inherently trustless nature is positioned to challenge the long-standing dominance of traditional financial (TradFi) systems, which are typically managed by centralized entities.
The expanding use of DeFi in payments and investments could propel non-stablecoin tokenized RWAs to a market capitalization of $2 trillion by 2028, according to the investment bank’s projections.
Within this $2 trillion market, an estimated $750 billion is expected to flow into money-market funds, another $750 billion into tokenized US equities, $250 billion into tokenized US funds, and an additional $250 billion into less liquid segments such as private equity, commodities, corporate debt, and tokenized real estate.
“Stablecoin liquidity and DeFi banking are important pre-requisites for a rapid expansion of tokenised RWAs,” noted Geoff Kendrick, Standard Chartered’s global head of digital assets research. He added, “We expect exponential growth in RWAs in the coming years.”
Achieving a $2 trillion market capitalization signifies an over 57-fold increase for RWAs from their current estimated cumulative value of $35 billion over the next three years, based on data from RWA.xyz.
BlackRock’s Influence on ETF Market Performance
The anticipated approval of altcoin ETFs may not generate the substantial investor inflows expected unless giant asset manager BlackRock participates, according to recent market data. The performance of spot Bitcoin ETFs highlights the significant impact of larger players.
BlackRock’s iShares Bitcoin Trust ETF garnered $28.1 billion in investments during the year, standing out as the only fund with positive year-to-date inflows, driving total spot Bitcoin ETF inflows to a cumulative $26.9 billion.
Excluding BlackRock’s fund, spot Bitcoin ETFs have experienced a cumulative net outflow of $1.27 billion year-to-date. This underscores the crucial role of major asset managers in channeling capital into new ETF products.
The inflows observed in spot Bitcoin ETFs were identified as a primary catalyst for Bitcoin’s price momentum throughout the year. The involvement of a firm like BlackRock, managing $13.5 trillion in assets as of Q3 2025, is often seen as a key indicator of market confidence and liquidity.
Solana Set for Potential Inflows with New ETF Launch
The cryptocurrency community is keenly observing the debut of the first Solana staking ETF, an event anticipated to attract billions of dollars into Solana and the broader altcoin market. This move signifies Solana’s entry into the big league of digital assets accessible via regulated investment products.
Alongside the Solana ETF, three other altcoin ETFs were expected to launch: Bitwise’s Solana ETF and Canary’s Litecoin and Hedera ETFs.
The approval of the first Solana staking ETF is considered a transformative milestone that could potentially inject between $3 billion and $6 billion in new capital into the Solana ecosystem within its first year of operation. This influx is largely attributed to the ETF’s staking feature, which offers an additional passive income stream for holders.
The staking mechanism introduces a compelling passive yield opportunity, estimated at an additional 5%, which could attract more institutional capital not only to Solana but also to the wider altcoin sector beyond traditional ETF investments.
Staking involves locking up tokens within a proof-of-stake blockchain network for a set period to help secure the network, earning passive income in return. For Bitcoin, ETFs accounted for approximately 75% of new investment when the cryptocurrency reclaimed the $50,000 mark shortly after the debut of spot BTC ETFs.
dYdX Proposes Payout Following Exchange Outage
Decentralized exchange dYdX has released a post-mortem analysis and a community update outlining plans to compensate traders affected by a chain halt that disrupted operations for approximately eight hours during a recent market crash.
The exchange announced that its governance community will review a proposal to compensate affected traders with up to $462,000 from the protocol’s insurance fund. This move aims to address losses incurred due to the outage.
dYdX attributed the October 10th outage to a misordered code process, with its duration being exacerbated by delays in validators restarting their oracle sidecar services. When the chain eventually resumed, the matching engine processed trades and liquidations at incorrect prices due to outdated oracle data.
While dYdX confirmed that no user funds were lost on-chain, certain traders did experience liquidation-related losses during the downtime. The decision on whether to proceed with compensation from the protocol’s insurance fund rests with the dYdX governance community.
DeFi Market Overview
Data from Cointelegraph Markets Pro and TradingView indicates that a majority of the top 100 cryptocurrencies by market capitalization concluded the week in negative territory.
The Plasma (XPL) token experienced the most significant decline among the top 100, falling over 18%. Following closely was DoubleZero (2Z), which saw a decrease of over 17% during the past week.
Closing Insights
This week highlighted the intricate relationship between macroeconomic events, regulatory shifts, and the cryptocurrency market. While initial recovery signs were promising, significant outflows from Bitcoin ETFs and trade uncertainties tempered optimism.
Positive long-term outlooks from industry figures like Michael Saylor and projections for substantial growth in tokenized real-world assets underscore the ongoing development and potential of the broader digital asset space.
The increasing sophistication of investment products, such as the launch of Solana ETFs, suggests a maturing market actively seeking innovative ways to engage with digital assets.