Bitcoin News Today: Institutional Shifts Propel XRP as Bitcoin Plummets Toward $112K

Bitcoin's price tumbled to $112,000 on Wednesday, marking one of its sharpest declines in recent months, as markets braced for the Federal Reserve's upcoming policy decision. The drop, which followed a brief rebound above $115,000 earlier in the week, came amid heightened uncertainty over U.S.-China trade tensions and shifting investor sentiment. Meanwhile, XRP, Ripple's native token, outperformed major cryptocurrencies, surging 5% to $2.61 as institutional interest in the company's expanding financial infrastructure drove optimism, according to a Times Tabloid analysis.

The U.S. and China appeared closer to resolving trade disputes after top negotiators reached preliminary consensus on issues including export controls and fentanyl trafficking, easing fears of a 100% tariff on Chinese goods, according to a CoinMarketCap article. This development bolstered risk-on sentiment, with Bitcoin rebounding to $114,000 by Sunday as traders rotated out of safe-haven assets. Deribit, a crypto derivatives exchange, noted that volatility premiums for downside Bitcoin options had shrunk to 2-3%, signaling reduced bearish bias, according to a Yahoo Finance report.

Ripple's strategic acquisitions, including its $1.25 billion purchase of prime brokerage platform Hidden Road and $1 billion acquisition of treasury management firm GTreasury, have positioned XRP as a key player in institutional finance. The firm's rebranded Ripple Prime now offers trading, custody, and settlement services, while its stake in Evernorth—a publicly traded entity planning to hold XRP—has amplified the token's utility and visibility, as the Times Tabloid analysis noted. Analysts suggest these moves could cement XRP's role as a bridge asset in global markets, contrasting with Bitcoin's recent volatility.

Bitcoin ETFs showed mixed performance, with spot Bitcoin ETFs attracting $90.6 million in inflows on Oct. 23, while Ethereum ETFs lost $93.6 million. Fidelity's FBTC and BlackRock's IBIT led Bitcoin inflows, but Ethereum's ETHA fund posted the largest outflows at $100.99 million, according to a CoinPedia article. The divergence reflects diverging investor strategies, with Bitcoin maintaining a 6.78% share of the total market cap in ETFs compared to Ethereum's 5.55%.

Meanwhile, Japan's Metaplanet, the largest public Bitcoin holder in Asia, announced a $500 million share buyback program to strengthen its Bitcoin-centric strategy. The company, which holds 30,823 BTC ($3.5 billion), aims to repurchase 13.1% of its shares to boost its "BTC Yield"—a metric measuring Bitcoin per share—while expanding its holdings to 210,000 BTC by 2027, CoinPedia reported. The buyback, funded by a Bitcoin-backed credit facility, underscores growing institutional confidence in crypto as a capital allocation tool, according to a Crypto.News report.

The Fed's policy outlook remains pivotal. While easing trade tensions have lifted risk appetite, analysts emphasize that Bitcoin's sustained recovery will depend on the central bank's stance. A dovish pivot could reignite momentum for risk assets, but a hawkish approach might prolong the current correction. For now, the market's focus remains on geopolitical developments and the Fed's Oct. 30 meeting, according to CoinMarketCap.