Bitcoin News Today: Fed's Stealth QE and Institutional Shifts Power Bitcoin's Path to $140K Despite Dips

Bitcoin's price has dipped below $100,000, yet prominent figures like Arthur Hayes, co-founder of BitMEX, and Bitwise CIO remain bullish, citing structural shifts in the market and potential monetary policy catalysts. Despite the pullback, analysts argue that institutional adoption, expanding mining infrastructure, and a looming "stealth quantitative easing" (QE) strategy could reignite a rally toward $140,000 or higher by year-end.

The cryptocurrency's recent underperformance has been attributed to a cooling in ETF inflows and selling pressure from long-term holders. According to a Coinotag report, institutional demand—once driven by aggressive spot ETF accumulation—has slowed, with BlackRock's ETF inflows plummeting from over 10,000 BTC weekly to below 1,000 BTC in 2025. Meanwhile, retail participation has dwindled, with retail trading volume accounting for just 0.48% of total Bitcoin transactions, down from 1.8% in 2021, as highlighted in another Coinotag report. This shift signals a maturing market where institutional players, including corporate treasuries and macro-sensitive funds, now dominate demand, according to a separate Coinotag analysis.

Hayes, however, remains optimistic, framing the current downturn as a prelude to a larger bullish cycle. In a recent Hayes essay, he argued that the U.S. Treasury and Federal Reserve are orchestrating a "stealth QE" through the Standing Repo Facility (SRF), which injects liquidity into the financial system to support debt markets. With the U.S. projected to issue $2 trillion in new debt annually, Hayes contends that the Fed's balance-sheet expansion—masked as routine liquidity management—will ultimately benefit Bitcoin by increasing global dollar liquidity, a theory echoed in a CoinEdition piece.

The argument gains traction as Bitcoin's infrastructure continues to strengthen. Miners are scaling operations, with the network's hashrate hitting record levels of 5.96 million ASICs online. BitMEX's Ju highlighted this as a "clear long-term bullish signal," noting that rising hash rates reflect growing confidence in Bitcoin's role as a "money vessel," as reported by Cointelegraph. Additionally, corporate adoption is accelerating, with MicroStrategy and other firms adding Bitcoin to treasuries, while ETFs continue to absorb demand previously driven by retail speculation, a trend noted in the earlier Coinotag analysis.

Despite these fundamentals, risks persist. ETF inflows have yet to rebound, and geopolitical tensions—including Trump-era tariffs—could delay a recovery. However, analysts from Bitfinex suggest that a combination of Fed rate cuts, renewed ETF demand, and seasonal strength in Q4 could push Bitcoin to $140,000 by November, according to the Cointelegraph report. Meanwhile, on-chain data indicates that long-term holders remain profitable, with Bitcoin's average cost basis at $55,900 and unrealized gains hovering near 93%, as outlined in the Coinotag analysis.

As the market awaits catalysts, Hayes and others emphasize the importance of liquidity-driven cycles. "The market will rebound sharply once 'stealth QE' kicks in," he wrote in a Bitcoinsistemi article, predicting that the Fed's indirect monetary expansion could usher in a new bull season. For now, investors are balancing caution with optimism, monitoring both institutional flows and central bank actions for signs of the next major move.