Bitcoin and Ethereum Momentum Builds: Institutional Demand, Upgrades, and Web3 Innovation

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The blockchain landscape continues to evolve at a rapid pace, with major developments across Bitcoin, Ethereum, and emerging Web3 projects. From institutional interest fueling Bitcoin’s momentum to critical network upgrades on Ethereum and strategic moves in decentralized finance, this week’s highlights underscore growing maturity and adoption in the crypto ecosystem.

Bitcoin: Institutional Adoption Drives Market Surge

Recent performance in the Bitcoin market is increasingly being attributed to strong institutional demand. According to a research report published by JPMorgan on Wednesday, the recent upward trajectory of BTC is not driven by retail speculation but rather by significant inflows into larger wallets—typically associated with institutional investors.

This shift aligns with broader macroeconomic trends. Ricardo Salinas, Mexico’s third-wealthiest individual, emphasized Bitcoin’s role as a hedge against government overreach and currency devaluation, particularly in economies suffering from hyperinflation. He argued that citizens must reclaim control over their wealth, and assets like Bitcoin—immune to inflationary policies—offer a viable solution due to their anti-confiscatory and decentralized nature.

👉 Discover how institutional investors are reshaping the future of digital assets.

From a technical perspective, Jamie Coutts CMT, a Bloomberg Intelligence crypto analyst, noted that Bitcoin’s current price action mirrors the breakout seen in July 2020 when BTC surpassed $10,500—a key resistance level that cleared massive supply overhangs. While short-term pullbacks are expected, similar to Q3 2020, the overall structure confirms what analysts refer to as a “bull market regime.” This pattern was first identified in December 2022, suggesting sustained bullish momentum.

Despite regulatory uncertainty, interest in Bitcoin continues to surge globally. Google search data reveals an 826% spike in queries for “buy Bitcoin” in the UK over just seven days. In the U.S., searches for “should I buy Bitcoin now?” rose over 250%, while niche queries like “can I buy Bitcoin on Fidelity?” jumped more than 3,100%. Meanwhile, global searches for “is now a good time to buy Bitcoin?” increased by 110%, indicating rising retail curiosity.

Interestingly, interest in BlackRock’s spot Bitcoin ETF climbed 250%, reflecting heightened anticipation around regulatory approval and mainstream financial integration.

Financial Advisors Reassess Bitcoin Allocation

Bitwise research analyst Ryan Rasmussen shared insights into how financial advisors are beginning to shift their stance on Bitcoin. Historically, advisors allocated between 1% and 5% of portfolios to BTC, often placing it at the lower end due to competing opportunities in traditional markets. However, amid rising inflation, economic volatility, and geopolitical tensions, more professionals are considering increasing exposure.

This strategic pivot highlights Bitcoin’s growing recognition as a legitimate portfolio diversifier and inflation hedge—an evolution that could accelerate further if spot ETF approvals materialize.

Ethereum: Roadmap Advances Despite Delayed Upgrades

While Bitcoin captures headlines for its price action, Ethereum remains focused on long-term scalability and usability improvements.

The highly anticipated Dencun upgrade will not be implemented before the end of 2023, confirmed core Ethereum developers. The delay stems from persistent consensus issues across multiple developer testnets (devnets), with none progressing smoothly thus far. A Prysm developer known as Potuz stated definitively that a mainnet fork before year-end is impossible.

However, Goldman Sachs projects the upgrade may still go live in Q1 2024. Dencun aims to enhance Layer 2 rollups by improving data availability through proto-danksharding (EIP-4844), significantly reducing transaction costs for end users. This upgrade is seen as a crucial step toward transforming Ethereum into a scalable settlement layer.

Ecosystem Growth and Cross-Chain Innovation

Despite the delay, activity within the Ethereum ecosystem remains robust:

👉 Explore how Layer 2 solutions are revolutionizing Ethereum's scalability.

Emerging Projects and Web3 Developments

Beyond the two largest blockchains, innovation continues across DeFi, NFTs, infrastructure, and education.

Regulatory and Market Challenges

India’s crypto exchange CoinDCX criticized the country’s 1% TDS tax on digital asset transactions, claiming it has driven 95% of trading volume offshore. CEO Sumit Gupta argued that instead of enhancing transparency, the tax has pushed activity beyond regulatory oversight—undermining its original intent.

Meanwhile, Tether pushed back against mainstream media reports alleging widespread use of crypto in terrorism financing. The stablecoin issuer called out significant inaccuracies—particularly in a Wall Street Journal report—and urged governments to conduct independent fact-checking to avoid misrepresenting the industry.

Strategic Moves in DeFi and Infrastructure

Other notable updates:

NFTs and Digital Collectibles

Frequently Asked Questions (FAQ)

Q: What is driving Bitcoin’s recent price increase?
A: Institutional demand is a primary driver, evidenced by large BTC inflows into whale wallets. Macroeconomic concerns like inflation and financial sovereignty also contribute to growing adoption.

Q: When is Ethereum’s Dencun upgrade expected?
A: Originally delayed from 2023, Dencun is now projected for Q1 2024. It will improve Layer 2 scalability through proto-danksharding.

Q: How are financial advisors viewing Bitcoin today?
A: More advisors are considering increasing Bitcoin allocations beyond the traditional 1–5% range due to its potential as an inflation hedge and portfolio diversifier.

Q: Why did India’s crypto tax fail?
A: The 1% TDS tax unintentionally pushed 95% of trading volume overseas, making oversight harder rather than easier.

Q: What is POL token’s role in Polygon 2.0?
A: POL powers Polygon’s upcoming ZK-based ecosystem with native restaking, enabling validators to secure multiple chains simultaneously.

Q: Are NFTs still relevant?
A: Yes—innovative use cases like NFT stamps, artist collaborations, and educational credentials show NFTs evolving beyond speculative art.

👉 Stay ahead of the next wave of blockchain innovation—learn where the market is heading next.


Core Keywords: Bitcoin institutional demand, Ethereum Dencun upgrade, Layer 2 scalability, spot Bitcoin ETF, Web3 education, DeFi compliance, NFT innovation