Ethereum News Update: Crypto Market Diverges—Bitcoin Faces Downturn Threat While Ethereum and DeFi Experience Rapid Expansion

Bitcoin's recent price fluctuations have triggered urgent alerts as

supporters and DeFi pioneers point toward differing directions for the market

The latest volatility in Bitcoin's value has heightened fears of a possible 50% drop, with experts attributing this risk to global political unrest, evolving regulations, and ETF trends. This caution comes as the wider crypto sector sees Ethereum (ETH) and decentralized finance (DeFi) ventures such as Mutuum Finance drawing both institutional and individual investors, even as Bitcoin's outlook remains unpredictable.

Tom Lee, who co-founded

, has become a prominent advocate for Ethereum, describing its recent price dip as a "temporary mispricing" and an excellent entry point, according to a . BitMine took advantage of this by acquiring another $250 million in from platforms like Bitgo and Kraken, raising its total ETH holdings to 3.3 million—equivalent to 2.7% of the circulating supply, as reported by . Lee forecasts that ETH could reach $10,000 by the end of the year and potentially $60,000 in the long run, citing the tokenization of real-world assets and increased institutional participation as key factors, according to . His optimistic outlook fits with BitMine's broader ambition to become a leading force in Ethereum, and Lee's previous predictions—such as his 2018 forecast that came close to its $125,000 goal—add weight to his views, as noted by .

Despite the confidence among Ethereum enthusiasts, Bitcoin's story is marked by greater instability. Recent spot ETF investments, spearheaded by BlackRock's IBIT, brought $477 million into the market on October 21, pushing Bitcoin's price to $108,000, according to

. In contrast, Ethereum ETFs experienced a $127.4 million withdrawal, based on data from . The Trump administration's push for deregulation has further encouraged crypto mergers and acquisitions, with FalconX's $8 billion purchase of 21shares and Coinbase's $2.9 billion acquisition of Deribit contributing to a 30-fold rise in Q3 2025 deal activity, as outlined in a . These developments reflect growing institutional trust, though Bitcoin's prospects are still challenged by broader economic pressures, such as higher real interest rates and ongoing U.S.-China trade disputes, as previously highlighted by Trading News.

Meanwhile, DeFi advancements are transforming the industry. Mutuum Finance (MUTM), a dual-lending protocol, has gained notable attention for securing $17.75 million in funding during its development, with tokens sold at $0.035, according to Cryptopolitan. The project's leaderboard system, which rewards contributors, has drawn 17,370 supporters to its DeFi platform, Cryptopolitan adds. While Ethereum remains the focus for major investors, Mutuum Finance offers a parallel growth narrative, blending early-stage promise with scalable solutions for capital efficiency.

The split in the crypto market is also evident in ETF activity. Australia's Monochrome Spot Bitcoin ETF (IBTC) now holds 1,101 BTC valued at AU$183 million, while T. Rowe Price's newly proposed Active Crypto ETF seeks to outperform benchmarks by managing a portfolio of 5–15 digital assets, according to a

. These offerings demonstrate the sector's evolution, as institutional investors pursue broader exposure amid clearer regulations.

With Bitcoin facing the risk of a sharp correction, Ethereum and DeFi sectors seem set for expansion. Whether through institutional investments, asset tokenization, or early-stage innovation项目，the coming phase for crypto will likely be shaped by contrasting themes: caution on one side and bold growth on the other.