Bitcoin News Today: Crypto Markets Swing from Extreme Fear to Stability as Institutions Accumulate

The Bitcoin Fear & Greed Index plummeted to an extreme fear reading of 29 earlier this month, triggering a cascade of market reactions that underscored the crypto sector's sensitivity to macroeconomic and geopolitical shifts. By October 29, the index had rebounded to a neutral 51, signaling a stabilization in investor sentiment after a volatile period marked by a 74-point swing from greed to fear. The drop to 29 followed President Donald Trump's announcement of China tariffs on October 10, which triggered $19 billion in crypto liquidations and sent Bitcoin to an intraday low of $108,201. However, the subsequent recovery to $115,566 reflected declining selling pressure and renewed institutional confidence, with Bitcoin's dominance rising to 55% as spot volume surged 31.1% to $75 billion, a development covered in the same coinotag piece.

The volatility coincided with significant outflows from crypto ETFs. U.S. spot Bitcoin ETFs recorded $471 million in net outflows on October 29, with Fidelity's FBTC and BlackRock's IBIT leading the exodus. Ethereum ETFs also faced $81.4 million in outflows, though BlackRock's ETHA bucked the trend with a $21.7 million inflow. Analysts attributed the redemptions to profit-taking and macroeconomic uncertainty, particularly after Federal Reserve Chair Jerome Powell tempered market optimism during his post-rate-cut comments, a point noted in that liquidation report. "This is a classic 'sell-the-news' event," said Nick Ruck of LVRG Research, noting that Powell's remarks on an "unguaranteed" December rate cut exacerbated short-term jitters.

Geopolitical developments further amplified the turbulence. The Trump-Xi summit in South Korea, aimed at easing trade tensions, briefly steadied markets as Bitcoin climbed 1.6% post-summit. Agreements to delay U.S. tariffs on China and relax rare earth export controls eased fears of supply chain disruptions for crypto mining hardware, though long-term challenges remain in semiconductor diversification, as that coverage noted. Meanwhile, on-chain data revealed contrasting narratives: While early Bitcoin whale Owen Gunden moved $290 million to Kraken, signaling profit-taking, a savvy trader with address 0xc2a leveraged Hyperliquid to gained $17 million by riding Bitcoin's rebound.

Despite the chaos, signs of accumulation emerged. Glassnode data showed flattened Cumulative Volume Delta since October 10, indicating peaked negative sentiment, a trend highlighted in earlier coverage. CryptoQuant's analysis highlighted declining on-exchange reserves and a 30-day netflow average suggesting institutional accumulation. Additionally, Bitcoin's MVRV ratio of 1.8 and SOPR metric near 1.02 indicated undervaluation, offering a potential floor for further declines, according to the coinotag analysis.

The market's resilience was also evident in ETF performance. While October 29's outflows marked a setback, Bitcoin ETFs remained net positive for the month, with assets under management exceeding $50 billion, as financefeeds reported. Ethereum's ETHA success highlighted growing interest in altcoins, driven by staking yields and network upgrades, a point covered in the coinotag ETHA piece.

As the sector navigates these dynamics, investors are urged to monitor sentiment indicators and macroeconomic catalysts. With Bitcoin stabilizing above $100,000 and the Fed's pivot to ending quantitative tightening in December, analysts like David Sacks of the Council on Foreign Relations argue that crypto's cyclical nature could reward patient, informed participants, a perspective noted in reporting on the Trump-Xi talks.