Bitcoin News Today: Crypto's Rally Faces Crucial Test: Fed Moves and Trade Relief vs. CPI and Geopolitical Risks

The U.S. crypto market is poised for significant volatility as multiple catalysts converge ahead of key economic and geopolitical developments. Bitcoin (BTC) surged to $114,000 on Tuesday following the Federal Reserve's announcement of plans to explore crypto payment accounts for firms, potentially granting access to Fed systems, according to a Benzinga report. This development, coupled with easing U.S.-China trade tensions, has reignited bullish sentiment, with Ethereum (ETH) and XRP climbing over 2% while gold dipped, the Benzinga report added. However, market participants remain cautious amid sharp price swings and looming macroeconomic data releases.

The Fed's move has triggered a broad rally across major cryptocurrencies. Bitcoin briefly reclaimed $113,000, Ethereum hit $4,018, and XRP rose to $2.48, the Benzinga report said. Analysts attribute the surge to speculation that regulated crypto infrastructure could stabilize the market. Meanwhile, institutional activity has intensified, with BlackRock depositing 2,854 BTC ($314 million) and 29,639 ETH ($115 million) into Coinbase Prime in a 24-hour period, according to a Coinotag report. Such inflows highlight growing adoption of custody solutions by major players, though experts caution these movements do not directly signal price direction.

Geopolitical developments further complicate the outlook. President Donald Trump confirmed a meeting with Chinese President Xi Jinping at the APEC summit on October 31, easing fears of a prolonged trade war, according to a Crypto.news report. The announcement lifted crypto markets, with Bitcoin rising 2% and Ethereum gaining 3.5%, the Crypto.news report said. However, earlier this month, Trump's tariff threats and China's export restrictions had triggered a $19 billion liquidation event, wiping out 99% of some altcoins' value, according to a Cointelegraph article. The upcoming meeting could determine whether this relief rally sustains or if renewed tensions disrupt gains.

Market structure indicators show mixed signals. Coinglass data reveals $557 million in liquidations over the past 24 hours, with 141,966 traders affected, as reported by Benzinga. Open interest increased 3.2% to $153 billion, suggesting renewed leveraged trading activity, Crypto.news noted. Technical analysts like Jelle and Daan Crypto Trades note Bitcoin's rangebound pattern between $107,000 and $112,000, with a break above $116,000 signaling a potential end to the correction phase, the Benzinga piece observed. Conversely, a drop below $107,000 could push prices below $100,000.

Institutional confidence in crypto's future is also growing. BitcoinOS, a DeFi project, raised $10 million in funding led by Greenfield Capital to expand institutional Bitcoin finance tools, according to a Decrypt report. Meanwhile, Samson Mow, a prominent Bitcoin advocate, predicts BTC could hit $10 million post-$1 million, valuing the market at $197 trillion, according to Coinotag. His forecast, while ambitious, aligns with historical patterns like halvings and rising ETF inflows, which have driven institutional adoption, Coinotag added.

Regulatory developments add another layer of uncertainty. The U.S. Treasury faces pressure to modernize AML rules using AI and zero-knowledge proofs, according to an FXStreet article, while the Office of the Comptroller of the Currency downplays stablecoin risks, the Decrypt report noted. Additionally, Trump's pardon of Binance founder Changpeng Zhao has been interpreted as a pro-crypto signal, potentially easing regulatory scrutiny, the Crypto.news report suggested.

The coming week will test the market's resilience. The October CPI report, due later this month, could influence Bitcoin's trajectory, as could outcomes from the Trump-Xi meeting, the Decrypt report noted. For now, bulls control the narrative, but volatility remains high. As one trader quoted in the Benzinga report noted, "The market's max pain leans bullish, but CPI data and the U.S.-China trade deal will ultimately determine the direction."