Bitcoin News Today: Institutional Confidence and Macro Tailwinds Send Bitcoin to Record $116K

Bitcoin surged past $116,000 in late September 2025, marking a fresh all-time high amid a confluence of macroeconomic tailwinds and institutional confidence. The move, fueled by global rate-cut expectations, a weakening U.S. dollar, and growing crypto-friendly policies under the Biden administration, extended a year-over-year rally that has more than doubled Bitcoin's value. Coinglass data revealed over $416 million in short positions liquidated in a single day, exacerbating the upward momentum as bearish traders scrambled to cover losses Bitcoin Breaches $116K in Fresh All-Time High as Markets Roar^[1]. Deribit analytics highlighted a "negative dealer gamma zone" between $112,000 and $120,000, where market makers are compelled to buy as prices rise, potentially amplifying volatility Bitcoin Breaches $116K in Fresh All-Time High as Markets Roar^[1].

Institutional demand further underpinned the rally. Fidelity Investments executed a $97.7 million BTC purchase of 836.75 Bitcoin, signaling renewed confidence in the asset as a macro hedge. This followed record $163 million in net inflows into Bitcoin ETFs on September 18, pushing year-to-date inflows to $20 billion Bitcoin (BTC) Price Prediction: Bitcoin Holds Firm Above $116K as Fidelity’s $97M BTC Buy Keeps $138K Target Alive^[2]. BlackRock and Grayscale also saw rising inflows into their ETF products, reflecting broader adoption by traditional finance players. Meanwhile, MicroStrategy's Michael Saylor led a $27.2 million acquisition of 220 BTC, averaging $123,561 per coin, as part of a strategy to accumulate the asset amid volatility .

Technical indicators reinforced the bullish narrative. A breakout above $116,300 triggered liquidations of overleveraged futures positions, a pattern historically associated with 10–20% gains. Analysts noted a parallel channel breakout as a key setup for a potential advance toward $138,000 by late 2025 Bitcoin (BTC) Price Prediction: Bitcoin Holds Firm Above $116K as Fidelity’s $97M BTC Buy Keeps $138K Target Alive^[2]. Bitcoin's price action remained within a well-defined uptrend, supported by sustained institutional buying and a weakening dollar.

The rally was preceded by a volatile weekend triggered by U.S.-China trade tensions. President Donald Trump's announcement of 100% tariffs on Chinese goods led to a $19 billion liquidation event, the largest in crypto history, as Bitcoin plummeted to $103,000 . However, Trump's subsequent comments on Truth Social-assuring markets that "it will all be fine" with China-spurred a recovery. By October 12, Bitcoin had rebounded to $114,359, up 5% in 24 hours, while Ethereum reclaimed $4,100 Trump’s New 100% Tariffs on China Triggered a $19 Billion Crypto Liquidation^[5].

Market structure metrics underscored the resilience of Bitcoin's dominance. Glassnode noted a rebound in Bitcoin's market share from 57% to 59%, signaling a healthier ecosystem. On-chain data also revealed a 55% decline in Bitcoin's 25-delta options skew, reflecting reduced demand for downside protection and growing investor confidence Bitcoin Blasts Past $116K as 'Uptober' Propels Crypto Market Cap to $4.1T^[3].

Analysts remain cautiously optimistic. While short-term corrections to $100,000 are possible, the combination of ETF inflows, institutional accumulation, and macroeconomic tailwinds suggests Bitcoin's bull case remains intact. Deribit options data indicated a 63% probability of Bitcoin dominance reaching 63% by year-end, a stark contrast to the 53% probability previously Bitcoin Blasts Past $116K as 'Uptober' Propels Crypto Market Cap to $4.1T^[3].