Bitcoin News Today: Fed's Pivot and Trump-Xi Tensions Push Crypto to Crucial Crossroads: Bitcoin, Ethereum at Key Thresholds

Bitcoin reclaimed $108,000 and Ethereum surged above $3,800 as markets grappled with shifting macroeconomic signals, geopolitical tensions, and evolving institutional investment strategies. The cryptocurrency rally followed a volatile October triggered by U.S. President Donald Trump's 100% tariff announcement on Chinese imports, which initially sent Bitcoin crashing to $104,000 before rebounding, according to a Cointelegraph report. Analysts now point to a potential "Fed pivot" as a key catalyst for further gains, with Federal Reserve Chair Jerome Powell signaling the end of quantitative tightening—a policy shift expected to inject trillions into markets, according to a Forbes analysis. Binance founder Changpeng "CZ" Zhao has even predicted a $28 trillion valuation for Bitcoin, citing the central bank's impending money-printing cycle, the Forbes analysis said.

The Trump-Xi tariff standoff, which briefly stabilized after the leaders confirmed a meeting at the APEC summit, was noted in Barron's coverage. While the initial shock spurred a $19.35 billion liquidation event, according to a Yahoo report, Bitcoin's recovery to $111,000 and Ethereum's breakout above $4,200 suggest resilience, as shown in a Yahoo analysis. Institutional investors are increasingly rotating capital from Bitcoin to Ethereum, driven by Ethereum ETFs' $9 billion in Q3 inflows—the first time ETH outpaced BTC in quarterly demand, according to a Coinpedia analysis. This trend aligns with on-chain data showing whale accumulation of 6.8 million ETH by October and rising total value locked (TVL) in DeFi protocols, as reported in a TradingView post.

Ethereum's technical outlook has turned bullish as it holds above $3,800, with analysts forecasting a potential $5,600 target if support levels hold, the Yahoo analysis added. Meanwhile, Bitcoin faces a critical threshold at $123,000, where short positions risk liquidation, according to a Bitget update. The crypto market's mixed performance is mirrored in ETF flows: while Bitcoin and Ethereum ETFs saw $550 million in outflows following Powell's hawkish October 29 comments, according to a Coinpedia note, new entrants like Grayscale's Solana ETF attracted $1.4 million in debut inflows, per The Block report.

Regulatory developments also fueled optimism. The SEC's embrace of tokenized securities and Treasury Secretary Scott Bessent's endorsement of stablecoins have bolstered confidence, as covered in a Cointelegraph piece. Michael Saylor's Strategy, the largest corporate Bitcoin holder, added 390 BTC in Q3, while American Corporation joined the top 26 corporate holders, the Yahoo report noted. Yet risks persist, as exemplified by trader Andrew Kang's 50% loss on a Bitcoin short position amid the post-crash rebound, the Bitget update reported.

With the Fed's next rate decision looming and U.S.-China trade talks in flux, the crypto market remains poised for volatility. As one analyst noted, "The coming weeks will test whether this rally is a sustainable recovery or a temporary reprieve," a concern echoed in the Yahoo analysis.