Bitcoin News Today: Bitcoin's $112k Surge Signals Digital Reserve Asset Rise, TVL Hits $4.21T

The global cryptocurrency market has reached a milestone as its total value locked (TVL) surpassed $4.21 trillion, driven by Bitcoin's (BTC) resurgence to record highs. Bitcoin, the largest cryptocurrency by market capitalization, climbed above $112,000 in early October 2025, fueled by renewed institutional interest, macroeconomic tailwinds, and anticipation of the upcoming halving event in 2026. This surge follows a broader market correction in late 2024, during which Bitcoin briefly dipped below $110,000 in August 2025 amid macroeconomic uncertainty.

The rally has been underpinned by a confluence of factors, including increased adoption of Bitcoin as a hedge against inflation and a shift in investor sentiment toward risk-on assets. Institutional investors have also ramped up allocations to Bitcoin, with major custodians reporting a 25% year-to-date increase in institutional-grade Bitcoin holdings. Meanwhile, the U.S. Federal Reserve's pivot toward dovish monetary policy has alleviated concerns over tightening cycles, further bolstering demand for crypto assets.

Technical indicators suggest a consolidation phase for Bitcoin following its recent gains. The Relative Strength Index (RSI) currently hovers near 58, indicating a balanced market, while the Moving Average Convergence Divergence (MACD) remains positive, signaling sustained upward momentum. Analysts caution that Bitcoin's next key resistance lies at $115,000, with a break above this level potentially triggering a retest of the $120,000 psychological barrier. Conversely, a pullback to the $105,000 support zone could reignite short-term volatility as traders reassess positioning.

The broader crypto market has also seen a rebalancing of capital flows. While Bitcoin's dominance ratio has edged up to 48%, altcoins such as Ethereum (ETH) and Solana (SOL) remain under pressure, with ETH trading below $4,000 as of mid-October 2025. This divergence highlights a shift in investor priorities toward blue-chip assets amid heightened market volatility. However, decentralized finance (DeFi) projects have attracted renewed attention, with platforms like Mutuum Finance (MUTM) raising over $16.52 million in its presale, signaling optimism about utility-driven models.

Market participants remain divided on the sustainability of Bitcoin's rally. Some analysts argue that the $4.21T market cap milestone is a temporary peak, citing historical precedents where liquidity-driven surges were followed by sharp corrections. Others contend that Bitcoin's integration into mainstream financial systems, coupled with regulatory clarity in key jurisdictions, could cement its role as a digital reserve asset. For now, the market appears to be in a holding pattern, with investors closely monitoring macroeconomic data and U.S. inflation metrics for directional cues.

Source: [1] OpenAI's ChatGPT-5 Gives Mutuum Finance (MUTM) and Dogecoin (DOGE) Price Predictions for the End of 2025 (https://www.cryptopolitan.com/openais-chatgpt-5-gives-mutuum-finance-mutm-and-dogecoin-doge-price-predictions-for-the-end-of-2025/)