Bitcoin News Today: Institutions Bet Big as Crypto Swings Between Fear and Faith

Bitcoin and Ethereum faced turbulent trading conditions this week as the crypto market grappled with geopolitical tensions, institutional shifts, and volatile investor sentiment. Bitcoin briefly dipped below $110,000, while Ethereum sank to the $3,900 range, marking one of the sharpest corrections in recent history amid a broader $19 billion in liquidations following a black swan event triggered by U.S. President Donald Trump's aggressive tariff announcements, according to Finbold.

The downturn followed a week of record highs, with Bitcoin surging past $126,000 in early October before plunging 19.56% in just hours. Institutional players, however, appeared undeterred: BeInCrypto reported that BitMine purchased $250 million in ETH and expanded its total holdings to over 3.3 million ETH, valued at $13 billion. Meanwhile, MicroStrategy's Michael Saylor announced the acquisition of 168 BTC for $18.8 million, signaling continued corporate confidence in Bitcoin's long-term trajectory.

The market correction coincided with a sharp rotation of capital away from traditional safe-haven assets. Gold and silver prices plummeted by over 6% and 8.7%, respectively, as investors shifted funds into Bitcoin, and CryptoRank reported that Bitcoin surged past $113,000 on October 21. Federal Reserve Governor Christopher Waller's announcement of a "skinny master account" program—granting fintechs and crypto firms limited access to the Fed's payment system—fueled optimism about regulatory integration and liquidity growth, as covered by Yahoo Finance. Bitwise Asset Management noted that even a 3–4% shift from gold to crypto could theoretically double Bitcoin's price, highlighting its structural advantage in a risk-on environment.

Yet challenges persisted. U.S. spot Bitcoin ETFs recorded a four-day outflow streak, with BlackRock's IBIT seeing $100.65 million in redemptions on October 20, CryptoNews reported, while other outlets warned of broader ETF weakness. Ethereum ETFs fared worse, hemorrhaging $145.68 million in a single day as market participants deleveraged amid rising geopolitical uncertainty, a trend highlighted by CoinPedia. On-chain data revealed a 23% drop in Bitcoin's futures open interest to $72 billion, reflecting heightened risk-off sentiment, according to FXStreet.

Despite the volatility, some analysts remain bullish. Ethereum's network activity and DeFi growth have rebounded, with daily transactions exceeding 1.2 million and total value locked rising 8% week-over-week. A breakout above $4,400 could propel ETH toward $5,000 by year-end, Crypto.News predicts. Conversely, pessimists warn of a potential pullback to $3,300 if on-chain activity stagnates.

The mixed signals underscore the crypto market's sensitivity to macroeconomic shifts. While institutional buyers and AI-driven strategies like CoinTech2u's $1.3 million profit during the crash highlight resilience, lingering concerns over U.S.-China trade tensions and a prolonged government shutdown continue to weigh on risk assets.