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Bitcoin Updates Today: Bitcoin Breaks Above $112K Amid Fed Policy Shift and ETF Momentum Boosts Institutional Confidence

Bitcoin Updates Today: Bitcoin Breaks Above $112K Amid Fed Policy Shift and ETF Momentum Boosts Institutional Confidence

Bitget-RWA2025/10/29 19:10
By:Bitget-RWA

- Bitcoin surges past $112K driven by Fed rate cuts and institutional ETF adoption. - Fed's 100-basis-point cuts since 2024 and quantitative easing boost crypto liquidity. - U.S. spot Bitcoin ETFs inject $3.9T market capitalization while retail demand grows. - $409M in long-position liquidations highlights short-term volatility risks. - 2026 halving event and regulatory shifts remain key long-term price drivers.

Bitcoin has climbed above $112,000, reaching a notable benchmark in its ongoing upward trend. This achievement comes after a stretch of price swings, where the cryptocurrency dropped to $112,412 earlier in the week amid concerns of a broader market downturn, as reported by

. Renewed confidence, sparked by changes in the global economy and increased institutional involvement, has propelled BTC to fresh peaks, and some experts believe the rally could persist.

This upward movement coincides with expectations that the U.S. Federal Reserve will lower interest rates and resume quantitative easing (QE), injecting more liquidity into riskier assets like cryptocurrencies—a trend highlighted by

. Since September 2024, the Fed has already slashed rates by more than 100 basis points, with additional reductions anticipated soon. This shift to a more accommodative monetary stance, along with the conclusion of quantitative tightening, has created a supportive environment for , which has historically thrived when interest rates are low.

Bitcoin Updates Today: Bitcoin Breaks Above $112K Amid Fed Policy Shift and ETF Momentum Boosts Institutional Confidence image 0

Institutional participation has been a major factor as well. The introduction of U.S. spot Bitcoin ETFs at the start of 2024 has brought a steady influx of capital, helping to dampen sharp price drops and reduce volatility, according to Yahoo Finance. These ETFs, now managing billions in assets, have become a reliable source of demand, strengthening Bitcoin’s reputation as a credible investment. At the same time, retail investors have increased their activity, further boosting buying momentum as more individuals join the market, as noted by

.

Despite the strong upward trend, there are still hurdles to overcome. The cryptocurrency market’s total value fell by 1% to $3.9 trillion on October 28, largely due to significant liquidations of long positions, Coinpedia stated. CoinGlass data shows that over $409 million in long positions were liquidated within a single day, pointing to short-term instability. Furthermore, although Bitcoin recently surpassed $115,000, some analysts warn that a period of consolidation or a pullback could be next, as has happened in earlier bull markets.

Breaking above the $115,000 mark carries considerable psychological weight. Historically, Bitcoin’s price has experienced extended growth followed by sharp declines. With gains recorded in 2023, 2024, and 2025, many anticipate that 2026 could usher in a bear market, according to Yahoo Finance. However, the current cycle lacks the typical “blow-off top”—a phase marked by intense excitement and wild price swings—suggesting this rally may be different. Blockchain data reveals that whales and long-term holders have realized profits around the $100,000 level, indicating a more gradual accumulation, as Yahoo Finance reports.

Looking forward, Bitcoin’s path will be shaped by both macroeconomic trends and evolving market dynamics. The upcoming halving event in 2026, which has historically tightened supply and boosted prices, is expected to be a significant driver. Nevertheless, changes in regulations and shifts in the global economy will also be crucial. Experts recommend that investors remain both optimistic and cautious, as volatility and regulatory challenges continue to characterize the market, according to CryptoRank.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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