The trade agreement framework between the U.S. and China, revealed by Treasury Secretary Scott Bessent, has sparked fresh optimism in global financial markets, with digital assets such as
Bitcoin
and
Ethereum
climbing as tensions eased following Bessent’s announcement of a
major trade pact with China
. This arrangement, which may prevent the 100% tariffs threatened by Trump, has already led to a 1.8% increase in Bitcoin and a 3.6% rise in Ether. This comes after a
record-breaking $10 billion in crypto M&A
during Q3 2025, fueled by aggressive global interest rate reductions and a move toward blockchain infrastructure.
More institutional investors are now leaning toward Ethereum over Bitcoin, with treasury firms such as Tom Lee’s Bitmine amassing 3.2 million ETH—giving them a 0.40% supply dominance over corporate Bitcoin holdings, according to a
Yahoo Finance report
. This shift is attributed to Ethereum’s evolution after adopting Proof-of-Stake (PoS), which cut energy consumption by 99% and introduced yield-earning capabilities, appealing to institutions focused on sustainability. At the same time, Bitcoin’s on-chain activity has intensified, with $400 million locked in DeFi protocols over the past 10 days, indicating strong long-term faith in a
bullish Bitcoin outlook
.
The
a16z State of Crypto report
points to Solana’s rapid rise as a leading blockchain, now accounting for 53% of onchain app revenue along with platforms like Hyperliquid. Solana’s developer community has grown by 78%, and its low-cost structure has made it a top choice for DeFi and consumer applications, surpassing both Ethereum and Bitcoin in real-world economic activity. Stablecoins now process $46 trillion in yearly transactions, serving as the foundation of global onchain finance, with
Tether
and
USDC
controlling 87% of the market, as reported in the
State of Crypto 2025
.
Nonetheless, obstacles remain. Although blockchain networks now handle 3,400 transactions per second—a hundredfold increase since 2020—there are ongoing debates about their reliability under heavy usage. Experts warn that improvements in scalability must be matched with robust security, especially as AI-driven and machine-to-machine transactions are expected to generate $30 trillion in value by 2030.
Institutional adoption and public listings are picking up speed. Tokenization company Securitize is targeting a
public debut
through a $1.25 billion SPAC transaction, while Tether’s gold-backed tokens surpassed 11.6 tons in Q3, highlighting growing interest in blockchain-based commodities. Major financial institutions, including Visa and BlackRock, are expanding their crypto involvement, with BlackRock’s IBIT ETF leading $175 billion in crypto exchange-traded funds.
With the Federal Reserve preparing for rate cuts and upcoming talks between Trump and Xi, markets remain highly responsive to geopolitical developments. A dovish stance from the Fed or a breakthrough in trade could send Bitcoin soaring toward $115,000, while renewed friction could prompt a market correction.
