Bitcoin News Today: Bitcoin's Next Leg Higher Powered by Fed Cuts and $61B ETF Inflows

Bitcoin is set for a potential surge as the Federal Reserve signals a series of rate cuts and inflationary pressures ease, creating a favorable environment for the cryptocurrency. Analysts and market participants are increasingly pointing to the interplay between macroeconomic policy and institutional demand as key drivers for Bitcoin's next leg higher.

The U.S. inflation rate hit 3.0% in September 2025, according to CNBC's inflation breakdown, lower than expectations, with longer-term inflation expectations expected to decline further as tariff-related price pressures wane. Federal Reserve officials have hinted at a dovish pivot, with the central bank likely to cut interest rates by 25 basis points at its upcoming policy meeting. This shift is critical for Bitcoin, as lower rates reduce the opportunity cost of holding non-yielding assets like crypto, while also spurring capital inflows into riskier assets.

Institutional adoption is amplifying the bullish case. Bitcoin spot ETFs, which have attracted $61.54 billion in inflows since their January 2024 launch, continue to absorb capital that might otherwise go into Bitcoin treasuries. BlackRock's IBIT led a $3.55 billion influx in recent weeks, despite temporary redemptions. Meanwhile, Grant Cardone added $50 million worth of Bitcoin to his hybrid funds, leveraging dips to bolster a strategy that combines real estate cash flows with BTC exposure.

The Fed's anticipated rate cuts are also reshaping the landscape for Bitcoin miners and investors. HIVE Digital Technologies, one of the few Bitcoin miners expanding hash rate, is set to boost its mining capacity to 35 exahashes per second by 2026, capitalizing on renewable energy in Paraguay. Lower borrowing costs will further reduce operational expenses for miners, enhancing profitability and reinforcing Bitcoin's appeal as a yield-generating asset.

Technical indicators and market sentiment also support a near-term rally. Bitcoin recently tested $111,786, holding above key support levels amid ETF inflows and retail momentum; Benzinga also reported that Bitcoin surged back to $112,000 as other cryptos rallied on the Fed's signals. While Ethereum ETFs have seen outflows, Bitcoin's spot price resilience highlights its dominance in attracting institutional and retail capital. Projects like Bitcoin Hyper ($HYPER), a Solana-based Layer-2 solution, are further fueling retail adoption by enabling Bitcoin to be used in DeFi and gaming ecosystems.

However, risks remain. AGNC Investment Corp. highlighted macroeconomic uncertainties, including fiscal policy shifts that could reignite inflation or volatility. Similarly, HIVE acknowledged short-term earnings drag from timing mismatches in capital deployment. Yet, management at both firms expressed confidence that these challenges would reverse as rate cuts materialize and market conditions stabilize.

The broader financial system is also aligning with Bitcoin's ascent. Orchid Island Capital's Q3 earnings call noted market anticipation for a dovish Fed leadership transition in 2026, which would further support agency mortgage-backed securities and, by extension, risk-on assets like Bitcoin. Meanwhile, First Reliance Bancshares and CBB Bancorp's Q3 results underscored robust liquidity and strong asset quality, reflecting a banking sector positioned to facilitate crypto-related credit growth.

AGNC outlines stable leverage strategy and sees 10.6% economic return as Fed signals rate cuts https://seekingalpha.com/news/4506430-agnc-outlines-stable-leverage-strategy-and-sees-10_6-percent-economic-return-as-fed-signals

Bitcoin Surges Back To $112,000 As Ethereum, XRP, Dogecoin Rally On Fed's Crypto Payment Signals https://www.benzinga.com/crypto/cryptocurrency/25/10/48338839/bitcoin-surges-back-to-112000-as-ethereum-xrp-dogecoin-rally-on-feds-crypto-payment-signals

Grant Cardone Buys Bitcoin Dip, Adds $50 Million Worth Of BTC To Power Innovative Real Estate Fund https://finance.yahoo.com/news/grant-cardone-buys-bitcoin-dip-160108370.html

HIVE to expand bitcoin mining capacity in Paraguay as 'one of the few BTC miners still growing hash rate' https://www.theblock.co/post/375570/hive-to-expand-bitcoin-mining-capacity-in-paraguay-as-one-of-the-few-btc-miners-still-growing-hash-rate

Trends in Bitcoin treasuries as inflows plunge 99% https://www.fxstreet.com/cryptocurrencies/news/trends-in-bitcoin-treasuries-as-inflows-plunge-99-202510211300

Here's the inflation breakdown for September 2025 - in one chart https://www.cnbc.com/2025/10/24/inflation-breakdown-september-2025-cpi-chart.html

Earnings call transcript: Orchid Island Capital Q3 2025 earnings beat expectations https://www.investing.com/news/transcripts/earnings-call-transcript-orchid-island-capital-q3-2025-earnings-beat-expectations-93CH-4308258

First Reliance Bancshares Reports Third Quarter 2025 Results https://www.morningstar.com/news/pr-newswire/20251024cl05937/first-reliance-bancshares-reports-third-quarter-2025-results

CBB Bancorp, Inc. Reports Third Quarter 2025 Financial Results https://www.morningstar.com/news/business-wire/20251023312341/cbb-bancorp-inc-reports-third-quarter-2025-financial-results

Bitcoin ETF Inflows Surge $3.55B - BlackRock's IBIT Leads as BTC-USD Holds $111,786 https://www.tradingnews.com/news/bitocin-etf-inflows-surge-3-5b-usd-blackrocks-ibit-leads-btc-usd