Bitcoin News Today: Bitcoin Rivals Equities in Portfolios as $30B Inflows Signal Institutional Shift

The cryptocurrency market has entered a period of consolidation, with Matrixport analysts noting that current conditions are "mostly sideways" as traders adopt a cautious stance ahead of key macroeconomic developments. Despite recent volatility, the medium-term outlook for digital assets remains unchanged, driven by sustained institutional inflows and evolving regulatory clarity.

Bitcoin (BTC-USD) has rebounded to over $126,000 following a record $3.55 billion in weekly inflows into U.S. spot Bitcoin ETFs in early October 2025, primarily fueled by BlackRock's iShares Bitcoin Trust, according to a TradingView report. Cumulative inflows for Bitcoin funds in 2025 now exceed $30.2 billion, reflecting growing institutional confidence. Public companies have also expanded their Bitcoin holdings, increasing from 476,000 BTC to 869,000 BTC in 2025, alongside a surge in U.S. Spot ETF assets, the TradingView report noted.

However, the market remains sensitive to macroeconomic shifts. A sharp correction in late October—triggered by President Donald Trump's announcement of a 100% tariff on Chinese goods—sparked $19.35 billion in liquidations and pushed Bitcoin below $104,000, according to a Yahoo Finance article. Analysts like CrypNuevo have since identified potential support levels near $111,000 and $112,000, warning that Bitcoin must first clear the "CME gap" at $107,000 to avoid further retracement, the Yahoo Finance article added.

The Federal Reserve's upcoming rate decision on October 29 has intensified market speculation. Investors are pricing in a 96.7% probability of a 25-basis-point cut, which could bolster risk-on sentiment, Coinpedia noted. CoinShares data shows crypto funds pulled in $921 million in inflows last week, driven by optimism around rate cuts and softer inflation data, according to a TradingView piece. Grayscale's outflows continued, though Bitcoin ETFs like iShares and Fidelity's Wise Origin led the rally, pushing BTC's assets under management to $178.2 billion, the TradingView piece added.

Regulatory developments are also reshaping the landscape. The Digital Asset Market Clarity Act of 2025, which established a federal framework for stablecoins, has provided clarity on the distinction between digital commodities and securities, TheStreet reported. Meanwhile, Trump's threat to replace Federal Reserve Chair Jerome Powell has added uncertainty, though crypto markets have largely priced in the expected rate cut, TheStreet added.

Despite short-term turbulence, long-term fundamentals remain intact. Institutional demand for Bitcoin treasuries has surged, with companies like Strategy and American Corporation adding thousands of BTC to their reserves, as noted in the Yahoo Finance article. On-chain staking activity has also risen, with $400 million in BTC locked in decentralized finance protocols over ten days, signaling renewed confidence, Yahoo Finance reported.

Matrixport's assessment underscores a market balancing between caution and conviction. While traders await clarity on trade negotiations between the U.S. and China and the Fed's policy trajectory, the broader institutional adoption of Bitcoin and regulatory progress suggest a resilient foundation for the medium term. As one analyst noted, "Bitcoin is no longer just competing with gold-it's now a direct rival to equities in portfolio diversification strategies," the Yahoo Finance piece observed.