Bitcoin News Today: Institutional Treasuries Fuel Bitcoin's $126K Ascent as DeFi's Power Grows

Source: [1] JPMorgan Eyes $126K Bitcoin by 2025, Says Price Is Too Low (https://icobench.com/news/jpmorgan-eyes-126k-bitcoin-by-2025-says-price-is-too-low/)

[2] Bitcoin (BTC) Price Prediction 2025 - 2030 (https://cryptonews.com/price-predictions/bitcoin-price-prediction/)

[3] Bitcoin (BTC) Price Prediction: Bitcoin Targets $126K Breakout (https://bravenewcoin.com/insights/bitcoin-btc-price-prediction-bitcoin-targets-126k-breakout-amid-fed-rate-cut-concerns)

[4] Aave Statistics 2025: Unleash DeFi Insights (https://coinlaw.io/aave-statistics/)

[5] Aave Breaks Resistance as DeFi Market Hits Record $219B Size (https://www.coindesk.com/markets/2025/10/03/aave-breaks-resistance-as-defi-market-hits-record-usd219b-size)

Bitcoin's price trajectory is drawing renewed attention as JPMorgan analysts project a $126,000 target by 2025, citing reduced volatility and institutional adoption. The firm's August 28 report highlighted Bitcoin's volatility dropping from 60% in early 2025 to 30%, a trend driven by corporate treasury withdrawals that have stabilized supply and attracted passive capital flows. Over 6% of Bitcoin's total supply is now staked with corporate treasuries, with entities like Metaplanet-holding 18,991 BTC-announcing plans to expand holdings to 210,000 BTC by 2027. This institutional demand underscores Bitcoin's growing legitimacy, evidenced by Metaplanet's inclusion in the FTSE All-World Index.

Technical analysis reveals Bitcoin consolidating in the $110,000–$113,000 range, with key support at $110,000 and resistance at $117,200. While short-term volatility persists, the Relative Strength Index (RSI) at 42 suggests bulls remain cautiously optimistic. A breakdown below $110,000 could trigger further declines, but sustained momentum above this level might propel BTC toward $120,000. Analysts at JPMorgan argue that Bitcoin's valuation parity with gold is achievable if volatility convergence continues, a scenario supported by macroeconomic shifts and regulatory clarity under the Trump administration.

Meanwhile, Aave, the leading decentralized finance (DeFi) lending protocol, solidified its dominance in Q2 2025 with a 60–62% market share. The platform's Total Value Locked (TVL) surged to $12–$15 billion, while $28.9 billion in outstanding borrowings positioned it as a financial force rivaling mid-tier U.S. banks. Aave's TVL growth of 52% outpaced the broader DeFi sector's 26%, driven by cross-chain expansion across 14 blockchains and institutional inflows totaling $410 million. The protocol's dynamic interest rate models and automated risk management, including the Edge Risk Oracle, have enhanced capital efficiency, with utilization rates in major markets reaching 65–80%.

Aave's native token, AAVE, traded at $283.52 as of October 3, 2025, breaking key resistance levels amid a broader DeFi market surge to $219 billion in assets. Institutional adoption and strategic partnerships, such as with Plasma's stablecoin-focused chain, further boosted Aave's TVL to $74 billion. Technical indicators suggest continued upside potential, though resistance between $290–$294 remains critical.

Bitcoin's price forecast for 2025 is bolstered by macroeconomic catalysts, including the Trump administration's pro-crypto policies and the U.S. Strategic Bitcoin Reserve initiative. While short-term corrections are possible ahead of the Federal Reserve's rate cut, long-term bullish sentiment prevails. By 2026, institutional adoption and regulatory clarity could drive Bitcoin toward $149,430.68, with projections extending to $265,565.33 by 2030. Aave's role in DeFi's infrastructure evolution, meanwhile, positions it as a key enabler of Bitcoin's utility beyond store-of-value, particularly through layer-2 innovations and cross-chain liquidity solutions.

The interplay between Bitcoin's price trajectory and DeFi's expansion highlights a maturing crypto ecosystem. As institutional demand and regulatory frameworks align, both Bitcoin and Aave are poised to redefine financial paradigms, albeit with risks tied to macroeconomic volatility and regulatory shifts.