Bitcoin News Today: Regulatory Shifts and ETF Inflows Fuel Crypto's $114k Rally
Aime SummaryBitcoin surged to $114,000 in October 2025, marking a significant rebound from a $20 billion liquidation event that had previously driven prices to critical lows. The rally, fueled by institutional adoption and favorable macroeconomic conditions, saw EthereumETH-- (ETH), XRPXRP--, and DogecoinDOGE-- (DOGE) also recover sharply, reflecting broader optimism in the crypto market.
The liquidation event, described as one of the largest in crypto history, occurred on October 10–11, 2025, when U.S. President Donald Trump's announcement of 100% tariffs on Chinese imports triggered a synchronized collapse in both equities and cryptocurrencies. BitcoinBTC-- plummeted to $101,500, while Ethereum dropped to $3,373.67. Altcoins like XRP, DOGEDOGE--, and SolanaSOL-- (SOL) faced catastrophic declines, with some tokens losing over 99% of their value before partial rebounds. Data from exchanges such as Hyperliquid and Binance revealed $19.1 billion in total liquidations within 24 hours, with $16.7 billion from long positions .
The subsequent recovery was driven by renewed institutional and retail demand. Bitcoin reclaimed $114,000 by October 13, 2025, supported by $50 billion in cumulative inflows into U.S. spot Bitcoin ETFs since their launch. Companies like MicroStrategy, Tesla, and GameStop continued accumulating Bitcoin as a treasury asset. Ethereum surged to $4,337–$4,458, while Solana climbed to $219, signaling a potential "altcoin season" [1]. Analysts from Standard Chartered predicted Bitcoin could reach $135,000 in the near term and $200,000 by year-end 2025, citing strong technical indicators and macroeconomic tailwinds like Federal Reserve rate cuts [1].
The market's resilience was further bolstered by regulatory developments. Trump's executive order to include cryptocurrencies in 401(k) retirement plans injected confidence, with Americans holding $8.7 trillion in 401(k) assets as of Q1 2025. This move, coupled with the SEC's approval of a generic framework for spot crypto ETFs, accelerated institutional adoption. Exchange-traded funds (ETFs) for Bitcoin and altcoins saw massive inflows, with BlackRock's IBIT alone amassing $51.6 billion in assets under management .
Technical analysis highlighted Bitcoin's alignment with global M2 money supply trends. The 12-week lagged correlation between M2 and BTC prices, as noted by analysts like Michaël van de Poppe, suggested a potential $150,000 target by Q3 2025. With M2 surpassing $112 trillion, liquidity expansion and declining volatility pointed to a bullish setup for sustained gains .
Despite the recovery, risks remained. U.S.-China trade tensions and geopolitical uncertainties could disrupt momentum. However, market makers and liquidity providers mitigated cascading liquidations through arbitrage strategies and emergency tools like auto-deleveraging. DeFi platforms maintained stability by hardcoding stablecoin prices and accepting blue-chip collateral, preventing further systemic risks [2].
The rally also spurred activity in decentralized finance (DeFi) and tokenized assets. Increased Total Value Locked (TVL) in DeFi protocols and rising demand for tokenized real-world assets (RWAs) underscored the sector's growth. NFTs and Web3 applications saw heightened engagement, with native tokens benefiting from renewed investor interest [1].
Looking ahead, the market faces key catalysts: Bitcoin ETF performance, regulatory clarity in the U.S. and EU, and the fourth Bitcoin halving's long-term effects. Analysts emphasized the importance of monitoring Bitcoin Dominance (BTC.D) for signs of capital rotation into altcoins and institutional allocations. Technically, resistance levels at $125,500 and $132,000 were critical for sustaining the upward trajectory [1].
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