Bitcoin News Today: Bitcoin's Liquidity Squeeze Fuels Bullish Bets as Institutions Double Down

Bitcoin's recent price action has sparked debates about its accessibility to retail investors and the sustainability of its bull market cycle, as institutional demand and geopolitical dynamics reshape the landscape. BlackRock, the world's largest asset manager, injected $324.3 million into its spot Bitcoin ETF (IBIT) between October 20 and 24, stabilizing the asset amid market turbulence, according to a TechStory report. This surge followed a volatile start to the week, with $100.7 million in outflows on October 20, but reversed sharply as inflows spiked to $210.9 million by October 21, CoinCentral reported. Analysts attribute this institutional buying to a renewed confidence in Bitcoin, with Tiger Research maintaining a $200,000 price target for Q4, the TechStory report said.

Meanwhile, SpaceX's $133 million Bitcoin transfer has added to market volatility, Benzinga reported. The aerospace firm moved 1,215 BTC—valued at $133.7 million—to new wallets, raising speculation about its future intentions. Unlike previous transfers, these addresses are not yet linked to SpaceX, leaving investors to wonder whether the move signals a strategic shift or potential sales. This activity comes as Tesla and SpaceX rank among the top privately held Bitcoin portfolios, with Tesla's stash valued at over $1.27 billion, Benzinga reported.

Binance Alpha 2.0's record $10.2 billion trading volume in October 2025 highlights growing retail participation, though Bitcoin's liquidity has tightened to a seven-year low, Coinotag reported. Long-term holders accumulated 373,700 BTC in a single month, reducing sell-side liquidity to 3.12 million BTC—the lowest since 2018, Coinotag noted. This scarcity, combined with a Liquidity Inventory Ratio of 8.3 months, suggests a supply-constrained environment that could support price stability. Meanwhile, mid-sized investors—termed "dolphins" for holding 100–1,000 BTC—now control 26% of Bitcoin's total supply, signaling structural demand, the TechStory report added.

Geopolitical developments also influenced Bitcoin's trajectory. The White House's confirmation of a Trump-Xi meeting in South Korea on October 30 boosted market sentiment, with Bitcoin rising 1.6% to $111,390, Barron's reported. The meeting, seen as a potential de-escalation of U.S.-China tensions, reversed earlier losses tied to Trump's tariff threats.

Technically, Bitcoin trades at $111,702, just below its 50-day moving average ($114,427) but above the 200-day average ($105,582), indicating a bullish trend, the TechStory report noted. The 14-day RSI at 47.72 suggests a neutral market, neither overbought nor oversold. However, critics warn that Bitcoin's rising price—now beyond the reach of many retail investors—could fracture the bull market if institutional accumulation falters.