Bitcoin News Today: Bitcoin's $116K Rally: ETFs Anchor Market in Geopolitical Storm

Bitcoin surged back to $116,000 after a volatile weekend marked by U.S.-China trade tensions and significant market corrections. The price decline began following President Donald Trump's announcement of a 100% tariff on Chinese goods, which triggered a flash crash sending Bitcoin below $110,000 and wiping out over $7 billion in liquidated positions Coindesk^[1]. Ether and other altcoins like XRP and Solana also plummeted, with some tokens losing up to 40% of their value Bitcoin Magazine^[2]. The sell-off, described by analysts as a "market dislocation" and "full leverage reset," was attributed to "overbought" conditions and geopolitical uncertainty Coindesk^[1].

The recovery to $116,000 reflected stabilizing market sentiment amid reduced geopolitical rhetoric and continued institutional demand. U.S. spot Bitcoin ETFs, which have attracted record inflows, remain a key driver of long-term bullish sentiment. As of October 2025, ETFs and corporate treasuries collectively hold approximately 12.2% of total Bitcoin supply, with public companies alone controlling 5.6% Bitcoin Treasuries Net^[3]. Analysts note that institutional adoption has historically preceded major price cycles, though recent corporate treasury activity has slowed due to macroeconomic caution CryptoQuant^[4].

Trade tensions between the U.S. and China remain a critical risk factor. Trump's escalation of tariffs followed China's new export controls on rare earth metals, exacerbating market jitters. However, Bitcoin's volatility has decreased compared to prior cycles, with on-chain metrics indicating reduced exchange inflows and increased long-term holding behavior Coinspeaker^[5].

Price forecasts for 2026 vary widely, ranging from $60,000 to $500,000, with a median target of $201,000. Optimists cite ETF inflows, Fed easing, and supply constraints as tailwinds, while pessimists warn of macroeconomic risks like inflation persistence and geopolitical shocks Ts2.Tech^[6]. The market's structure has shifted from retail-driven speculation to institutional-driven stability, with corporate and ETF holdings acting as a buffer against extreme price swings.