BlackRock is reportedly reaching out feelers to some of the world’s largest crypto exchanges for a potentially lucrative business deal. It wants them to allow BUIDL as collateral for derivatives trades, directly competing with Tether.

As of yet, few of the involved parties have gone on the record with specific details.

BlackRock’s Collateral Strategy

BlackRock aims to integrate its BUIDL tokenized fund into crypto derivatives trading as collateral, according to a Bloomberg report. The BUIDL fund, officially called the BlackRock USD Institutional Digital Liquidity fund, has seen significant success this year, boosting real-world asset (RWA) tokens.

BlackRock, alongside its brokerage partner Securitize, is reportedly in talks with major crypto exchanges, including Binance, OKX, and Deribit, regarding BUIDL’s use as collateral. However, these discussions remain largely private. Deribit’s CEO, Luuk Strijers, commented only that the exchange is “reviewing” several tokens, including BUIDL.

Read more: What Are Tokenized Real-World Assets (RWA)?

“The BUIDL ecosystem keeps growing, and we see significant potential in traders using the fund as collateral,” claimed Securitize, in some of the only public comments on these talks.

A key motivator for BlackRock is simple: it wishes to compete with Tether’s dominance in the stablecoin market, just like other firms have attempted. BUIDL is not, strictly speaking, a stablecoin; nevertheless it shares several similarities. Its value is tied to one dollar, it invests in Treasury bonds, etc. However, BUIDL also pays interest to holders, unlike stablecoins.

If major exchanges accept BUIDL as collateral instead of popular stablecoins like Tether, it could unlock a vast market. Centralized crypto exchanges handle massive trading volumes, with derivatives trades comprising the majority. By leveraging its expertise and connections in traditional finance, BlackRock stands to potentially earn billions if BUIDL gains traction in this space.

This is just one potential revenue stream that BlackRock is actively exploring. It purchased over $680 million in Bitcoin this week alone, after its ETF offering IBIT saw huge inflows. Regardless of BlackRock’s success with this particular play, its commitment to continued crypto investment seems ironclad.

Read more: What Is a Stablecoin? A Beginner’s Guide

Still, as Bloomberg pointed out, breaking into the stablecoin market is far from easy. Just this week, for example, PayPal’s own stablecoin PYUSD noticeably cratered in value. This likely explains why BlackRock is keeping its plans under wraps, cautiously evaluating BUIDL’s viability without making any major commitments.

This week in the crypto market, Bitcoin’s price surpassed $68,000, and the market capitalization returned to over $2.28 trillion.

BeInCrypto noted special investor interest in events such as Grayscale’s review of 35 altcoins for potential investment products and investors’ expectations of an altcoin season ahead of the US elections.

Additionally, Miles Deutscher has suggested several altcoins, claiming they might have a strong growth potential. The community is also paying attention to Craig Wright’s legal plans and Tesla’s Bitcoin movements.

Grayscale Unveils 35 Potential Altcoins

Earlier this week, Grayscale announced a list of 35 altcoins under consideration for future investment products. Following the announcement, many of these altcoins experienced significant price increases over the week. The top 10 altcoins on the list saw gains ranging from 13% to 49%.

Read more: 11 Cryptos To Add To Your Portfolio Before Altcoin Season

Thirty of the 35 altcoins enjoyed a green week, with only Kaspa (KAS) and Helium (HNT) facing notable declines of -4% and -7.4%, respectively.

“Assets Under Consideration lists digital assets not currently included in a Grayscale investment product but identified by our team as possible candidates for inclusion in a future product,” Grayscale explained.

Additionally, Grayscale filed with the SEC to convert its Digital Large Cap Fund into an ETF, following the success of transforming Bitcoin Trust and Ethereum Trust into spot ETFs.

Miles Deutscher Highlights 4 Altcoins

Investor Miles Deutscher introduced four altcoins that he believes could deliver 10x returns. These altcoins focus on GameFi, artificial intelligence (AI), Decentralized Physical Infrastructure Network (DePIN), and real-world assets (RWA) sectors, including:

• SuperVerse (SUPER)
• Bittensor (TAO)
• Mantra (OM)
• Render (RNDR)

Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024

Since his announcement, the prices of these altcoins have slightly declined, which occurred as Bitcoin Dominance reached a three-year high. Deutscher also commented on meme coins, suggesting they are at a crossroads and may face a short-term correction.

Craig Wright Plans to Sue Bitcoin Core

On October 11, a tracker from the UK High Court revealed that Craig Wright is taking legal action against Bitcoin Core and Square.

Wright, representing himself in the case as a “direct claimant,” is seeking £911 billion ( ~$1.18 trillion) from Bitcoin Core and Square, alleging they misrepresented Bitcoin (BTC) as the true version of the digital asset created by Satoshi Nakamoto.

Additionally, Wright threatened to sue MicroStrategy CEO Michael Saylor for allegedly misrepresenting Bitcoin. The Australian computer scientist is also filing three other legal appeals in the UK, two against the Crypto Open Patent Alliance (COPA) and one targeting Peter McCormack.

Read more: Satoshi Nakamoto – Who is the Founder of Bitcoin?

Altcoin Season Ahead of US Presidential Election?

Throughout the week, several crypto industry experts expressed optimism for altcoin’s price ahead of the US presidential election. Ki Young Ju, CEO of CryptoQuant, suggested that a Trump victory could spur regulatory changes that would trigger an altcoin season.

“If Trump wins, expect regulatory changes, including fee switches enabling token burns for revenue-generating projects,” Ki Young Ju said.

Technical analysts Michaël van de Poppe and CRG also predicted that the altcoin season could begin next month. Echoing these views, Crypto Rover forecasted an impending altcoin season by monitoring Bitcoin Dominance’s movements. Bitcoin Dominance (BTC.D) represents Bitcoin’s share of total market capitalization. Its adjustments often signal an altcoin rally.

Read more: Bitcoin Dominance Chart: What Is It and Why Is It Important?

Tesla Moves Bitcoin Worth Up to $760 Million

This week, Elon Musk’s Tesla unexpectedly moved nearly all of the Bitcoin it had held for the past three years to new wallet addresses. Initially, investors feared Tesla might be preparing to sell the BTC through OTC, but those concerns quickly dissipated as Bitcoin’s price remained unaffected.

“No proof it’s an OTC deal yet. Even if it was, that means someone else bought it so it’s not entirely bearish. Who knows,” Sir Doge of the Coin said.

Read more: Who Owns the Most Bitcoin in 2024?

Many now believe the move was a simple reallocation. In 2021, Musk had stated that Bitcoin payments made to Tesla would be held as Bitcoin, not converted into fiat.

Despite a strong performance and increasing adoption, Solana’s (SOL) price might fail to break its all-time high this year. This prediction is based on several key indicators that have been crucial in determining the altcoin’s direction.

At the beginning of 2024, SOL’s value was less than $100. Three months later, the altcoin broke the $200 mark. However, since then, it has struggled to reach the milestone, and investors might have to wait until 2025 before seeing the token surpass $260.

Investors Reduce Exposure to Solana 

One reason SOL reached $208 was its Open Interest (OI), which is an indicator of speculative activity. At that time, the OI climbed to $2.65 billion. Open Interest refers to the sum of the value of all open contracts in the market.

An increase in open interest, coupled with rising prices, typically signals the buildup of long positions. In most cases, this suggests that the upward trend is likely to continue. However, as of this writing, open interest has dropped by nearly $1 billion, indicating that many traders have reduced their exposure to the cryptocurrency.

From a price perspective, the declining OI, combined with the recent price surge over the past seven days, indicates that the uptrend may be losing momentum. If this trend continues, Solana’s price could struggle to retest the $200 mark before the end of 2024.

Read more: How to Buy Solana (SOL) and Everything You Need To Know

Besides that, one deciding factor has been the $180 supply zone. On several occasions, wherever SOL’s price hits $180, it becomes challenging to rise above the level without substantial buying pressure. 

For instance, on April 9, the token hit $180. But a few days later, it lost 23% of its value. Fast-forward to July 30, and a similar thing happened as the altcoin declined by a similar ratio. Therefore, even if SOL tries to hit that point again, it might experience a double-digit decline.

SOL Price Prediction: Sub-130 Still Possible

From a short-term perspective, the Chaikin Money Flow (CMF) has fallen into negative territory. The CMF is a technical oscillator that gauges the level of accumulation or distribution.

When the CMF rises, it signals a high level of accumulation, which can lead to a price increase if sustained. Conversely, a decline in the CMF indicates a higher level of distribution, which could signal potential bearish pressure.

Read more: 13 Best Solana (SOL) Wallets To Consider in October 2024

Due to the CMF’s current condition, Solana’s price might decrease to $127.75. But If the OI increases massively before this quarter ends, the prediction might not come to pass. Instead, SOL could rally above $200.