Ethereum News Today: JPMorgan's Crypto Collateral Shift Drives Bullish Outlook for Bitcoin, Ethereum Rally

Tom Lee, a prominent crypto analyst and chairman of BitMine, has reiterated his bullish stance on Bitcoin and Ethereum, predicting a year-end rally despite recent market turbulence. His optimism is underpinned by technical indicators and institutional developments, including JPMorgan's collateral program to allow Bitcoin and Ethereum as loan collateral for institutional clients by year-end. The move signals growing mainstream acceptance of cryptocurrencies and could catalyze renewed investor confidence.

The crypto market has been navigating a period of volatility, as CryptoNews discusses in "Why Is Crypto Down Today?". Ethereum (ETH) has been consolidating between $3,750 and $4,250 since early October. A break above $3,950 could target $4,400, while a breakdown below $3,800 risks a slide to $3,500. Meanwhile, Bitcoin (BTC) has stabilized near $111,300, holding within its weekly range but remaining 2.3% below its monthly open. Despite mixed short-term sentiment—reflected in the Crypto Fear and Greed Index's record-low reading of 29—U.S. spot Bitcoin ETFs added $477 million in net inflows on October 21, led by BlackRock's IBIT, while Ethereum ETFs saw $141.66 million in inflows; however, recent data revealed $93.6 million in Ethereum ETF outflows on October 23, according to a Coinpedia report.

JPMorgan's collateral program, expected to launch by year-end, represents a pivotal step in crypto's integration into traditional finance. Institutional clients will use Bitcoin and Ethereum—held by third-party custodians—as security for loans. This follows JPMorgan's earlier acceptance of crypto ETFs as collateral, extending its engagement with digital assets. The bank's blockchain division, Onyx, has already processed over $1 trillion in notional transactions, signaling confidence in the infrastructure. Analysts note the move could ease selling pressure by allowing institutions to access liquidity without liquidating holdings, a critical factor in stabilizing prices.

Technical and on-chain data also point to Ethereum's potential rebound. A "triple bottom" pattern around $3,750–$3,800 suggests strong support, while accumulation by large holders—visible in Glassnode data—indicates a possible reversal. Tom Lee has capitalized on this environment, purchasing $1.5 billion in ETH since October's deleveraging event, bringing BitMine's holdings to 3.3 million tokens, or 2.74% of Ethereum's total supply, as reported in BitMine Buys $1.5B. He compares Ethereum's trajectory to the U.S. dollar's post-1971 rise, arguing that institutional adoption and use cases (e.g., stablecoins, real estate tokenization) could propel ETH to $10,000 by year-end, a view Tom Lee projects in recent commentary.

The broader market context remains complex. While Bitcoin's market cap dominance stands at 4.6x Ethereum's, ETF inflows and strategic buying by firms like BitMine and MicroStrategy suggest sustained institutional interest. However, geopolitical tensions, such as U.S.-China trade frictions, continue to weigh on risk assets; Cryptonews explored these flow dynamics in "ETFs Rotate Amid U.S.-China Tension". JPMorgan's collateral initiative, though not an immediate catalyst, could provide the structural underpinning for a "MoonVember" rally, as historical data shows Bitcoin typically gains 20% in October during bull markets.

Meanwhile, developer and ecosystem discourse remains active: Polygon's founder questioned loyalty to Ethereum on X, as reported in Polygon founder questions loyalty.