Bitcoin News Today: Fed's Dovish Pivot Fuels Crypto and Stock Rally, But Risks Lurk

The Federal Reserve's anticipated rate cuts have ignited a surge in liquidity across both cryptocurrency and equity markets, with Bitcoin and stocks poised to benefit from a shift in monetary policy. AGNC Investment Corp., a mortgage real estate investment trust, reported a 10.6% economic return in Q3 2025, attributing the performance to favorable conditions driven by the Fed's pivot toward accommodative policy, according to Seeking Alpha. CEO Peter Federico highlighted that agency mortgage-backed securities (MBS) outperformed U.S. treasuries for five consecutive months, a trend last seen in 2013, signaling renewed investor confidence in risk assets as borrowing costs decline.

Bitcoin, meanwhile, climbed to $114,000 in early October, marking a 1.5% gain amid speculation that Fed rate cuts would redirect capital from low-yield money market funds into higher-risk assets, Benzinga reported. The cryptocurrency's rally coincided with a 20.3 million-dollar net inflow into Bitcoin ETFs on October 23, led by BlackRock's IBIT, which added $107.8 million in a single day, according to Crypto News. This follows BlackRock's recent deposit of 2,854 Bitcoin ($314 million) into Coinbase Prime, underscoring institutional demand for regulated custody solutions, per a Coinotag report.

The Fed's dovish stance has also spurred optimism in the broader market. T-Mobile US Inc. raised its full-year forecast after reporting record customer additions and $2.7 billion in net income for Q3 2025, reflecting a broader appetite for growth stocks in a lower-rate environment, according to Finimize. Similarly, former Ripple Labs executive Antony Welfare predicts that a 5-10% rotation of $7.4 trillion in money market funds into crypto could push Bitcoin toward all-time highs, countering bearish narratives, as reported by Coinotag.

Bitcoin miners are also capitalizing on the liquidity tailwind. HIVE Digital Technologies expanded its Paraguay-based mining operations to 22 EH/s, leveraging hydroelectric power and planning to reach 35 EH/s by 2026, according to The Block. The company's growth mirrors BlackRock's strategic Bitcoin accumulation, with both entities positioning for long-term gains as institutional adoption accelerates.

However, not all indicators are uniformly bullish. Bitcoin treasuries have seen a 99% plunge in inflows, prompting analysts to recommend dollar-cost averaging and portfolio diversification with gold and short-term bonds to mitigate volatility, per FXStreet. Additionally, while Bitcoin ETFs show renewed strength, Ethereum ETFs continued to post outflows, reflecting divergent investor sentiment across crypto assets, as Crypto News reported earlier.

The Fed's policy shift has also influenced niche tokens. Trump-backed World Liberty Financial (WLFI) surged 12% in 24 hours, outpacing Bitcoin and Ethereum, though its 70% decline from its peak underscores the speculative nature of such assets, in a Benzinga report.

As the Fed prepares further cuts, market participants are cautiously optimistic. AGNC's CFO Bernice Bell noted that lower funding costs and capital deployment will provide a "moderate tailwind" to net spread income, as Seeking Alpha reported earlier, while crypto analysts emphasize the potential for trillions in liquidity to flow into digital assets. With Bitcoin testing $115,000 and T-Mobile's stock climbing toward $229, the interplay between monetary easing and asset performance underscores a broader reallocation of capital in search of yield.