Bitcoin News Today: As AI Transactions Explode, Can Blockchain Scale Without Sacrificing Security?

The U.S.-China trade framework, announced by Treasury Secretary Scott Bessent, has injected renewed optimism into global markets, with crypto assets like Bitcoin and Ethereum surging amid easing tensions after Bessent unveiled a substantial trade framework with China. The deal, which could avert Trump's threatened 100% tariffs, has already spurred a 1.8% rally in Bitcoin and a 3.6% jump in Ether. This follows a record $10 billion in crypto M&A in Q3 2025, driven by aggressive global rate cuts and a shift toward blockchain-based infrastructure.

Institutional investors are increasingly favoring Ethereum over Bitcoin, with treasury firms like Tom Lee's Bitmine accumulating 3.2 million ETH—a 0.40% supply dominance edge over Bitcoin's corporate holdings, according to a Yahoo Finance analysis. This trend reflects Ethereum's post-Proof-of-Stake (PoS) transformation, which slashed energy use by 99% and introduced yield-bearing features, aligning with institutional demands for sustainability. Meanwhile, Bitcoin's on-chain activity has surged, with $400 million locked in decentralized finance protocols over 10 days, signaling long-term confidence in a Bitcoin price forecast.

The a16z State of Crypto report highlights Solana's rapid ascent as a blockchain leader, capturing 53% of onchain app revenue alongside platforms like Hyperliquid. Solana's 78% developer growth and low-cost architecture have made it a preferred ecosystem for DeFi and consumer apps, outpacing Ethereum and Bitcoin in real economic activity. Stablecoins, now processing $46 trillion in annual transactions, have become the backbone of global onchain finance, with Tether and USDC dominating 87% of the market, according to the State of Crypto 2025.

However, challenges persist. While blockchains now handle 3,400 transactions per second (TPS)—100x growth since 2020—the reliability of these networks under high load remains debated. Experts caution that scalability gains must be balanced with security, particularly as AI agents and machine-to-machine transactions are projected to drive $30 trillion in value by 2030.

Public listings and institutional integration are accelerating. Tokenization firm Securitize aims for a public listing via a $1.25 billion SPAC deal, while Tether's tokenized gold reserves exceeded 11.6 tons in Q3, reflecting demand for blockchain-backed commodities. Traditional finance giants, including Visa and BlackRock, are also deepening crypto exposure, with BlackRock's IBIT ETF leading $175 billion in crypto exchange-traded products.

As the Fed prepares to cut rates and Trump-Xi talks loom, markets remain sensitive to geopolitical shifts. A dovish monetary policy or trade breakthrough could propel Bitcoin toward $115,000, while renewed tensions might trigger a pullback.