Crypto Biz: Institutional Dominance in Bitcoin, AI, and Prediction Markets
The digital asset market continued to be shaped by institutional investors over the past week. However, geopolitical tensions once again highlighted the crypto market's sensitivity to macroeconomic conditions. As traders sought to de-risk amid tensions between the U.S. and Iran, over $1 billion flowed out of digital asset funds. This was reported by Cointelegraph.com reports .
According to CoinShares data, this outflow was one of the largest weekly declines this year. The primary losses were concentrated in Bitcoin and Ethereum products. Although market participants view Bitcoin as a macroeconomic hedge, investors still perceive digital assets as high-risk instruments during periods of extreme volatility.
Meanwhile, Tether strengthened its position in the industry by acquiring SoftBank's stake in Twenty One Capital. Led by Strike founder Jack Mallers, the company has accumulated over 42,000 BTC on its balance sheet. This deal further increases Tether's influence in the Bitcoin services market and serves to expand the company's range of financial services.
According to Bernstein research, Bitcoin miners are becoming strategic partners in the development of artificial intelligence (AI) infrastructure. Miners are diversifying their operations into data centers and high-performance computing (HPC) systems. This allows them not only to mine crypto but also to take a significant position in the AI technology race.
Another significant development was the partnership between Polymarket and Nasdaq. The parties agreed to launch prediction markets related to private companies. Such steps indicate that the integration of traditional financial institutions into the crypto ecosystem is continuing.
