Bitcoin News Today: Institutional Inflows and Softer Inflation Stabilize Crypto Market Sentiment

The cryptocurrency market's Fear & Greed Index climbed to 50 on October 28, 2025, signaling a shift to "neutral" sentiment from the prior week's "extreme fear" level of 25, according to a Coinotag report. This stabilization comes amid mixed signals from macroeconomic data, regulatory developments, and institutional investment flows that continue to shape crypto market dynamics.

The index, which aggregates metrics like volatility, trading volume, social media activity, and Bitcoin dominance, reflects a cautious balance between risk-off and risk-on behavior, according to a Moomoo article. Recent weeks saw the index plummet to 25 on October 22 amid Bitcoin's 14.6% drop to $106,825 and broader market jitters over U.S. inflation expectations and geopolitical tensions, as reported by Coinotag. However, renewed inflows into digital asset products and softer-than-expected inflation data have since restored investor confidence.

Market participants are closely watching the U.S. Federal Reserve's policy trajectory. The September 2025 CPI report, released October 24, showed core inflation rising 0.2%—a slowdown from July and August's 0.3% gains, according to CoinPedia live updates. This data bolstered expectations for rate cuts, driving $921 million in inflows to digital asset investment products last week, with Bitcoin alone attracting $931 million, according to a Yahoo Finance report. "The shift in macro sentiment has reignited institutional demand for digital assets," said analysts at CoinShares in a TradingView report, noting that Bitcoin's assets under management now exceed $178 billion.

Political developments also influenced sentiment. U.S. President Donald Trump's pardon of Changpeng Zhao, founder of Binance, sparked a short-term rally in crypto prices. Bitcoin rose 3.5% over the past week, while Ethereum and Binance Coin (BNB) gained 5% and 4%, respectively, as reported by a Yahoo Finance article. However, experts caution that while the move is bullish for crypto adoption, broader market performance will hinge on macroeconomic catalysts like U.S.-China trade relations and inflation trends.

Regional inflow patterns highlighted divergent investor strategies. The U.S. led with $843 million in crypto fund inflows, while Germany recorded its largest weekly inflow on record at $502 million, according to the Yahoo Finance report. Switzerland, by contrast, saw $359 million in outflows, though analysts attributed this to asset transfers between providers rather than selling pressure.

Bitcoin's dominance in capital flows contrasted with Ethereum's struggles. While Bitcoin's inflows pushed year-to-date totals to $30.2 billion, Ethereum recorded $169 million in outflows for its first negative week in five, per the Yahoo Finance report. Altcoins like Solana and XRP, however, gained traction with $29.4 million and $84.3 million in inflows, respectively, the TradingView piece noted.

Looking ahead, the market remains sensitive to Fed policy signals. A sustained drop in the Fear & Greed Index below 50 could indicate renewed caution, while further rate cut expectations may drive risk-on behavior. "CPI-driven rallies are typically short-lived," warned analysts, emphasizing the need for disciplined risk management, a point previously highlighted by Coinotag.