Bitcoin News Today: Institutional Demand Fuels Bitcoin's Recovery, Stabilizing Crypto Market

Bitcoin buyers have established deep bids below $105,000 as the crypto market appears to be stabilizing after a historic liquidation event. On-chain metrics indicate that over 90% of Bitcoin's circulating supply remains in profit, signaling a leverage-driven correction rather than a broad capitulation. The recent sell-off, which erased $19–$20 billion in leveraged positions within 24 hours, was triggered by geopolitical tensions and excessive derivatives exposure, but long-term holders have maintained composure, reinforcing structural strength.

Following a sharp drop to $102,000 in mid-October, Bitcoin has rebounded to around $112,000, consolidating above critical support levels. Analysts note that the market's behavior diverges from past crashes, such as the 2022 Luna and FTX collapses, where supply profitability fell below 65%. In contrast, current conditions suggest a controlled deleveraging of speculative positions, with $132 million in short liquidations recorded during the downturn. Blockchain analytics firm Glassnode highlighted that the Young Supply MVRV metric has normalized, indicating reduced speculative pressure and a healthier market base.

Technical indicators further support a potential rebound. Bitcoin's MVRV Z-Score of 2.15, as of late October, suggests balanced valuation, neither overbought nor oversold. Exchange-held Bitcoin reserves have fallen to a 10-year low of 2.4 million BTC, signaling reduced immediate sell pressure and sustained accumulation by long-term holders. This trend aligns with historical patterns preceding major bull runs, such as the 2020–2021 rally from $10,000 to $69,000.

Institutional demand has also played a pivotal role in stabilizing the market. Spot Bitcoin ETFs have attracted over $150 billion in assets under management, with BlackRock's fund alone nearing $84 billion. ETF inflows and corporate adoption, including purchases by firms like MicroStrategy and Trump Media, underscore growing confidence in Bitcoin as a store of value. Additionally, regulatory clarity and anticipated new crypto laws are expected to further boost institutional participation.

Analysts remain cautiously optimistic about Bitcoin's near-term trajectory. While the $110,000–$115,000 range is seen as critical for maintaining bullish momentum, a successful retest of the $117,500 level could catalyze a renewed rally toward $120,000–$125,000. Long-term projections, including forecasts from Bernstein and Standard Chartered, suggest Bitcoin could reach $200,000 by early 2026, driven by sustained institutional flows and macroeconomic tailwinds.

However, risks persist. Escalating U.S.–China trade tensions, potential U.S. recessions, or prolonged high interest rates could reintroduce volatility. Exchange infrastructure, while resilient in decentralized platforms like Uniswap, faces scrutiny as centralized exchanges grapple with margin adjustments post-crisis.

The market's current phase reflects a maturing crypto ecosystem, where leverage unwinding and institutional support are reshaping dynamics. As Bitcoin navigates this correction, the focus remains on macroeconomic catalysts, regulatory developments, and the resilience of long-term holders.