Bitcoin News Today: Institutions Embrace Bitcoin as Collateral, Fueling Crypto Optimism Amid Fed Easing

Generated by AI AgentCoin WorldReviewed byAInvest News Editorial Team
Monday, Oct 27, 2025 4:42 pm ET2min read
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- Bitcoin held $115,000 as Fed rate cut expectations and eased U.S.-China trade tensions boosted crypto risk appetite.

- Institutional moves like JPMorgan accepting Bitcoin as collateral and $3.5B ETF inflows reinforced market confidence.

- Ethereum, XRP, and Dogecoin rose amid optimism, though mixed sentiment persisted over macro risks and technical indicators.

- Geopolitical optimism from Trump-Xi trade talks lifted Bitcoin 1.6%, while ETF outflows highlighted diverging asset demand.

- Upcoming CPI data and TD Sequential sell signals remain critical for sustaining Bitcoin's $110,000 support level.

Bitcoin Holds $115,000 as Fed Rate Cut Hopes Boost Sentiment for

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Bitcoin (BTC) held near $115,000 on October 24, 2025, as anticipation of Federal Reserve rate cuts and easing U.S.-China trade tensions bolstered risk appetite across the crypto market. The Fed's projected rate reductions, combined with inflows into

spot ETFs and institutional moves like JPMorgan's plan to accept Bitcoin as loan collateral, underscored growing confidence in the asset class. Meanwhile, Ethereum (ETH), XRP, and Dogecoin (DOGE) also saw gains, though mixed sentiment persisted as market participants weighed macroeconomic risks against bullish technical setups.

The Fed's rate-cut cycle, which began in late 2024, initially triggered sharp crypto rallies. For instance, Bitcoin surged 16% in the week following the November 2024 cut and nearly 32% over the subsequent month. However, later reductions, including the September 2025 cut, produced weaker responses as markets priced in easing policy. Analysts noted that crypto typically reacts most strongly to the first signs of a Fed pivot rather than subsequent cuts, according to a

. With a 96.7% probability of another 25-basis-point rate cut at the October 2025 meeting, according to the CME FedWatch tool, investors remain split on whether history will repeat.

Bitcoin's resilience was further supported by institutional demand. Spot ETFs, including BlackRock's IBIT, recorded $3.5 billion in weekly inflows in early October, pushing total 2025 inflows to $26 billion, according to a

. JPMorgan's decision to allow institutional clients to use Bitcoin and Ethereum as collateral by year-end signaled growing acceptance of digital assets in traditional finance, a noted. The move mirrored broader trends, with Morgan Stanley and Fidelity also expanding crypto offerings.

Geopolitical developments added to the optimism. The confirmation of a Trump-Xi meeting in South Korea on October 30, aimed at de-escalating trade tensions, eased market fears of a 100% tariff on Chinese imports. Bitcoin rose 1.6% to $111,390 following the announcement, according to

, while Ethereum and XRP surged over 6% amid reduced volatility, a said.

However, challenges remain. Bitcoin faces profit-taking risks as the TD Sequential indicator signals potential sell-offs, and Polymarket data showed a 52% probability of

dropping below $100,000 by month-end, according to . Ethereum, trading at $4,168, formed a "triple bottom" pattern around $3,750–$3,800, suggesting strong support, CryptoNews reported. XRP and Dogecoin also showed strength, with XRP hitting $2.62 and Dogecoin rebounding above $0.20 as bulls defended key levels.

The market's mixed tone was evident in ETF flows. While Bitcoin ETFs saw $90.6 million in net inflows on October 24, Ethereum ETFs recorded $93.7 million in outflows. Analysts attributed this to diverging demand, with Bitcoin's fixed supply attracting capital as a scarcity hedge.

Looking ahead, the October CPI report, expected to show 0.4% monthly inflation, will be a critical catalyst. A softer print could reinforce the case for further Fed easing, while a hotter reading might pressure Bitcoin as risk-off sentiment returns. For now, Bitcoin's ability to hold above $110,000 suggests buyers remain in control, though a sustained break below $108,000 could reignite bearish momentum.

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